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1、 Earnings Report as of March 31,2023Deutsche BankContent2 Financial summary3 Results at a glance5 Strategy9 Group results13 Segment results22 Consolidated balance sheet24 Outlook27 Risks and opportunities30 Risk information42 Additional information42 Management and Supervisory Board43 Capital expend
2、itures and divestitures43 Events after the reporting period44 Basis of preparation/impact of changes in accounting principles47 Total net revenues47 Earnings per common share48 Consolidated statement of comprehensive income48 ImpactofECBTargetedLonger-termRefinancing Operations(TLTRO III)49 Provisio
3、ns49 Non-current assets and disposal groups held for sale50Non-GAAPfinancialmeasures56 Imprint 2 Deutsche Bank Financial summary Earnings Report as of March 31,2023 Financial summary Three months ended Mar 31,2023 Mar 31,2022 Group targets Post-tax return on average tangible shareholders equity1 8.3
4、%8.1%Compound annual growth rate of revenues from 20212 6.7%N/A Cost/income ratio3 71.0%73.4%Common Equity Tier 1 capital ratio 13.6%12.8%Statement of income Total net revenues,in bn.7.7 7.3 Provision for credit losses,in bn.0.4 0.3 Total noninterest expenses,in bn.5.5 5.4 Adjusted costs,in bn.4 5.4
5、 5.4 Pre-provision profit,in bn.5 2.2 2.0 Profit(loss)before tax,in bn.1.9 1.7 Profit(loss),in bn.1.3 1.2 Profit(loss)attributable to Deutsche Bank shareholders,in bn.1.2 1.1 Balance sheet6 Total assets,in bn.1,307 1,343 Net assets(adjusted),in bn.7 1,019 1,016 Average interest earning assets,in bn.
6、972 967 Loans(gross of allowance for loan losses),in bn.488 481 Average loans(gross of allowance for loan losses),in bn.488 478 Deposits,in bn.592 604 Allowance for loan losses,in bn.5.0 4.9 Shareholders equity,in bn.63 59 Sustainable finance volume(per quarter/year),in bn.8 22 20 Resources6 Risk-we
7、ighted assets,in bn.360 364 of which:operational risk RWA,in bn.59 60 Leverage exposure,in bn.1,238 1,164 Tangible shareholders equity(tangible book value),in bn.7 57 53 High-quality liquid assets(HQLA),in bn.208 214 Liquidity reserves in bn.241 246 Employees(full-time equivalent)86,712 83,000 Branc
8、hes 1,499 1,669 Ratios Post-tax return on average shareholders equity1 7.4%7.2%Provision for credit losses as bps of average loans 30.5 24.4 Operating leverage9 3.3%4.8%Net interest margin 1.4%1.2%Loan-to-deposit ratio 82.4%79.7%Leverage ratio(reported/phase-in)4.6%4.6%Liquidity coverage ratio 143%1
9、35%Share-related information Basic earnings per share 0.63 0.57 Diluted earnings per share 0.61 0.55 Book value per basic share outstanding7 30.33 28.09 Tangible book value per basic share outstanding7 27.28 25.15 Dividend per share(with respect to previous financial year)1 Based on profit(loss)attr
10、ibutable to Deutsche Bank shareholders after AT1 coupon;for further information,please refer to“Additional Information:Non-GAAP Financial Measures”of this report 2 Twelve months period compared to full year 2021 3 Total noninterest expenses as a percentage of net interest income before provision for
11、 credit losses,plus noninterest income 4 The reconciliation of adjusted costs is provided in section“Additional Information:Non-GAAP Financial Measures;Adjusted costs”of this document 5 Defined as net revenues less noninterest expenses 6 At period end 7 For further information please refer to“Additi
12、onal Information:Non-GAAP Financial Measures”of this report 8 Sustainable financing and investment activities are defined in the“Sustainable Financing Framework Deutsche Bank Group”which is available at investor-;in cases where validation against the Framework cannot be completed before the end of t
13、he reporting quarter,volumes are disclosed upon completion of the validation in subsequent quarters 9 Operating leverage is calculated as the difference between year-on-year change in percentages of reported net revenues and year-on-year change in percentages of reported noninterest expense Due to r
14、ounding,numbers presented throughout this document may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures Strong performance in volatile markets Improvement in pre-provision profit to 2.2bn in the quarter Ongoing disciplined expense management wit
15、h efficiencies offsetting investments and inflation,reducing CIR to 71%Revenues up 5%YoY with higher contributions from Corporate Bank and Private Bank Well diversified mix of businesses creates opportunity to perform strongly even in challenging markets Hosted 2nd Sustainability Deep Dive to update
16、 on business strategies,commitments and policies Increased sustainable finance volumes by 22bn in Q1 2023 Strong balance sheet,positioned to navigate uncertainty;credit loss provisions contained proving robust risk management Sound liquidity metrics above targeted level,reflecting prudent steeringPr
17、ofitabilityFranchiseSustainabilityResilienceFirst quarter of 2023RevenuesCET1RoTERoTE pro-rata annualized-bank leviesLCR7.7bnCumulative Sustainable Finance volumes238bn8%10%13.6%143%Continued progress across all divisions Increased net inflows,including into ESG products Developing the Xtrackers bra
18、nd Continue to invest in platform transformation Deposit stability despite competitive environment Further 36 branches closed in Q1 Penultimate wave of Postbank IT migration successfully executed Strong underlying FIC revenue driven by robust client activity Continued development of core franchise H
19、iring of key O&A personnel across M&A and selected regions/sectorsCorporate BankInvestment BankOperating leverage Revenue growth YoYNet inflowsRoTEManagementfee margin New MNC mandates for working capital and global value chain reviews Merchant Solutions entry into APAC Strong Corporate Trust moment
20、umAsset ManagementPrivate Bank+10%6bnNet inflows ex Cash9bn27.7bpsConsecutive quarter of YoY Rates growthO&A QoQ share growthFirst quarter of 20235th+40bps33%18.3%5 Deutsche Bank Strategy Earnings Report as of March 31,2023 Strategy The following section provides an update on the progress of Deutsch
21、e Banks strategy implementation in the first quarter of 2023 and should be read in conjunction with the Strategy section provided in the Annual Report 2022.Global Hausbank In March 2022,the Group outlined its strategic and financial roadmap through 2025,which aims to position Deutsche Bank as a“Glob
22、al Hausbank”,and communicated Deutsche Banks 2025 financial targets and capital objectives.The Global Hausbank strategy is underpinned by key themes which have become even more important in the light of the ongoing geopolitical and macro-economic challenges.In this environment,Deutsche Bank aims to
23、leverage a more favorable interest rate environment,deploy its risk management expertise to support clients,and allocate capital to high-return growth opportunities.As sustainability becomes ever more important,the bank aims to deepen its dialogue and support for clients and broaden the agenda in re
24、spect of the banks own operations.As technology continues to evolve,the bank aims to reap further cost savings,accelerate the transition to a digital bank and expand upon strategic partnerships,which are already creating substantial value.Deutsche Banks key performance indicators 2025 Financial targ
25、ets:Post-tax Return on Average Tangible Equity of above 10%for the Group Compounded annual growth rate of revenues of 3.5%to 4.5%Cost/income ratio of less than 62.5%Capital objectives:Common Equity Tier 1 capital ratio of approximately 13%50%Total payout ratio from 2025 Deutsche Bank reaffirms its f
26、inancial targets and capital objectives for 2025.Post-tax Return on Average Tangible Equity is a non-GAAP financial measure.Please refer to“Non-GAAP financial measures”of this report for the definitions of such measures and reconciliations to the IFRS measures on which they are based.Progress on str
27、ategy implementation In the first quarter of 2023,the Group made further progress towards its path to sustainable growth,despite turbulent conditions in the banking sector and macro-economic challenges.Deutsche Banks performance in the first quarter of 2023 demonstrated the resilience and strength o
28、f the franchise,profitability and balance sheet,as well as the importance of a Global Hausbank serving clients in volatile markets.Building on the progress made to date and opportunities in the market,the bank has identified three areas to accelerate the execution of its strategic agenda.First throu
29、gh operational efficiency:through targeted efficiency measures,the bank aims to increase cost saving ambitions by an additional 500 million to 2.5 billion from 2021,from 2.0 billion previously announced.Specific measures to meet this ambition include additional savings in the non-revenue generating
30、workforce,further optimizing the distribution networks in the Private Bank,streamlining the mortgage origination platform as well as benefits in operations and process automation.Second,the bank will focus on capital efficiency by freeing up 15 to 20 billion in risk weighted assets from reductions i
31、n certain low return lending and mortgage portfolios,greater utilization of securitization and hedging optimization.These measures are expected to have minimal revenue impact but will enable the Group to increase returns,and re-allocate resources to more capital-accretive businesses,and support capi
32、tal distributions.Third,the combination of cost and capital efficiency together with additional opportunities across markets positions the bank to outperform its existing revenue growth objectives through 2025.The Management Board changes announced by the bank in April 20223 aim to support this agen
33、da.Furthermore,the bank will continue to invest into its platforms,and benefit from opportunities created by current market conditions to attract talent to strengthen advisory capabilities in various businesses and regions,especially in Wealth Management and Origination and Advisory,including in Asi
34、a.These actions are expected to accelerate the execution of the banks strategy and increase returns to shareholders over time.6 Deutsche Bank Strategy Earnings Report as of March 31,2023 Sustainability Sustainability has been a central component of Deutsche Banks“Global Hausbank”strategy and an impo
35、rtant management priority of the bank.On March 2,2023,Deutsche Bank hosted its 2nd Sustainability Deep Dive where the bank announced additional measures to reinforce its net zero commitment.More details can be found on the banks webpage: bank continued to make progress in the first quarter of 2023 i
36、n implementing its target to achieve 500 billion in sustainable financing and investments by the end of 2025 by:Acting as sole mandated lead arranger and sustainability coordinator in a 5-year,120 million senior secured sustainability-linked term loan to Beontag Ltd.(Investment Bank)Acting as ESG co
37、ordinator and joint bookrunner in a 500 million inaugural sustainability-linked bond to IHO Holdings GmbH(Investment Bank)Facilitating 202 million structured export finance loan for the construction of two wind farms in Australia(Corporate Bank)Moreover,the Private Bank Germany and World Wide Fund F
38、or Nature(WWF)Germany signed an agreement for an initial two-year advisory service to further advance its sustainable finance offering.In addition,the bank invested into the Berlin-based start-up Plan A which offers carbon measurement solutions and services.Deutsche Bank also made progress in other
39、areas of its sustainability strategy.The bank tightened its policy for financing thermal coal and set the ambition that at least 90%of the high emitting clients in the most carbon intensive sectors that engage in new corporate lending transactions with the bank shall have a net zero commitment in pl
40、ace from 2026 onwards.Moreover,the bank published an updated human rights statement and implemented a minimum sustainability score requirement for new or extended vendor contracts with a threshold of more than 500,000 per annum.7 Deutsche Bank Strategy Earnings Report as of March 31,2023 Deutsche Ba
41、nk Businesses This section should be read in conjunction with the section Deutsche Bank:Deutsche Banks Organization in the Operating and Financial Review in the Annual Report 2022.Corporate Bank In the first quarter of 2023,Corporate Bank continued to make progress on the divisions strategic objecti
42、ves,leveraging the divisions strong brand and deep client relationships and aiming to offer a full range of advisory and financing solutions for corporate treasurers.The business aims to remain the trusted partner for the German economy and build on its standing as the leading Corporate Bank in its
43、home market.The division is also committed to connect financial institutions worldwide,a business where the business is one of the market leaders(source:SWIFT Euro peer benchmarking).The Corporate Banks initiatives target revenue growth with corporate clients across cash management and payments,incl
44、uding strengthening its fee-based business.As Corporate Bank seeks to grow its business with clients globally,the division commits to applying sound risk management principles in order to maintain its high-quality loan portfolio and strict lending standards.Equally,the division sees further potentia
45、l to reduce its cost base from technology and front-to-back process optimization,as well as automation and location strategy.The Corporate Banks ambition is also to become a leader in ESG and drive the transition to a sustainable economy by supporting its corporate clients globally.Further developin
46、g ESG offerings will be an integral part of the Corporate Banks approach,building on its tradition on innovations for corporate clients.Additionally,the division expects investments into new products enabling new business models of the real economy,like merchant solutions,to contribute to future sus
47、tainable growth.Investment Bank In the first quarter of 2023,Investment Bank continued to execute against the divisions strategic priorities,delivering robust business performance despite a highly challenging market environment.Within Fixed Income and Currencies,whilst business revenues were lower y
48、ear on year,this was against an exceptionally strong prior year quarter.Underlying performance was robust,and the division continued to provide a full suite of services to clients despite extreme volatility,specifically in interest rate markets following the collapse of Silicon Valley Bank,UBSs take
49、over of Credit Suisse and any related impacts.The Rates business demonstrated its recent development,growing revenues year on year despite the market environment,and the focused evolution of the Emerging Markets business also delivered revenue performance well above the historical average.The Financ
50、ing franchise continues to focus on targeted and disciplined balance sheet deployment,with ongoing strong client demand.Origination and Advisory revenue decreased year on year,though in line with the industry fee pool and reflected a market share recovery compared to the fourth quarter of 2022.The d
51、ivision continues to assess selected focus areas of growth within Mergers&Acquisitions,while remaining mindful of the challenging revenue environment.Investment Banks focus on delivering front-to-back efficiency continues,with various programs in place to enhance client interaction,from the price di
52、scovery through to settlement.During the quarter the division was awarded FX Derivatives House of the Year at the IFR 2022 Awards and Flow Market-Maker House of the Year at the Risk Awards.ESG continues to be a strategic focus area for the Investment Bank.The Origination&Advisory business acted as E
53、SG coordinator and joint bookrunner on IHO Holdings GmbH,500 million inaugural sustainability-linked bond and was joint bookrunner on Stellantis N.V.1,250 million inaugural green bond.Private Bank Private Bank Germany had a successful start in 2023 with strong revenue growth,partly driven by higher
54、income from deposits in a rising interest rate environment.Deposit revenue growth was further accelerated in the first quarter of 2023 with the launch of deposit campaigns at both brands,Deutsche Bank and Postbank.Private Bank Germany maintained an overall stable loan book alongside further impacts
55、of mortgage demand due to rising interest rates.Furthermore,first quarter marked the go-live of extended partnerships with Zurich and Talanx for insurance products and further strategic progress was made in restructuring Private Bank Germanys branch network and other efficiency measures.Private Bank
56、 Germany also continued to execute the migration of Postbank clients onto the Deutsche Bank IT platform.After completing a key milestone with the migration of four million contracts back in January,further seven million contracts were successfully migrated in the beginning of April 2023.The next ste
57、p is the migration of the remaining Postbank customer contracts onto a joint platform which is planned for mid-2023.8 Deutsche Bank Strategy Earnings Report as of March 31,2023 International Private Bank progressed with the execution of its strategic objectives in the first quarter.Despite continued
58、 market turbulences and geopolitical uncertainty,International Private Bank maintained strong revenue growth momentum across its regions,also fueled by increasing deposit revenues in the context of rising interest rates.Net new assets confirmed International Private Banks resilience,positive trend,a
59、nd was supported by the evolution of the divisions differentiating investment offering.Furthermore,the Wealth Management&Bank for Entrepreneurs segment continued to drive client activation and business momentum with selective hiring in strategic Ultra/High Net Worth growth markets like Asia and Midd
60、le East Africa.At the same time,International Private Bank maintained a continued focus on cost efficiency,largely self-funding growth investments and further optimizing the service model around its different client segments.For instance,the further rightsizing of the branch footprint in Italy allow
61、ed to free up resources in Premium Banking to be reinvested in growth initiatives.Similarly,the ongoing execution of the divisions IT and data strategy,including the progressing roll-out of the lean Cloud platform in Germany,was also an important driver in containing costs.Private Bank announced its
62、 ESG strategy for the upcoming years at Deutsche Banks Sustainability Deep Dive in March 2023.In Private Bank Germany,a strategic cooperation with WWF Germany was established to audit sustainability initiatives and to accelerate the change in the advisory and offering suite towards sustainability.In
63、ternational Private Bank successfully launched new ESG-related products like green and sustainability linked bonds in Italy and Germany.Asset Management Asset Management principally consists of DWS Group GmbH&Co.KGaA.DWS aspires to be one of the worlds leading asset managers with 841 billion in Asse
64、ts under Management as of March 31,2023.With the market environment becoming increasingly uncertain and client expectations evolving,DWS has refined its strategy with a goal of growing long-term shareholder value.Asset Management aims to maintain its leading position in Germany and further capture u
65、pside in Europe by building additional partnerships,growing its Passive business and leveraging its Alternatives capabilities to participate in the European transformation.In the Americas,DWS aims to expand its Passive and Alternatives businesses and in Asia Pacific focus on its strategic partnershi
66、ps.In December 2022 and as part of the refined strategy,DWS has reassessed its opportunities and has assigned its lines of business into four key strategic clusters categorized by the differentiation of its capabilities and the market growth potential:Growth(expanding areas of strength in Passive,bu
67、ilt around the Xtrackers brand,and Alternatives),Value(build and grow capabilities in Equity,Multi-Asset and Fixed Income),Build(leverage digital trends and translate into new digital products and solutions)and Reduce(reallocate financial resources to fund investments into Growth areas).Progress in
68、the quarter includes the launch of fourteen new funds,including nine Xtracker funds,and the transfer of the Private Equity Solutions business to Brookfield Asset Management.In addition,as part of the refined strategy,DWS announced new medium-term financial targets to be delivered over the next three
69、 years.DWS has identified five key enablers to support the execution of its strategic objectives.These are:expanding distribution partnerships,continuing to leverage collaboration with Deutsche Bank Group,enabling business by migrating to cloud and streamlining data management,creating a diverse cul
70、ture to drive strong performance for clients and building on a diversified management team with focus on execution.DWS is further refining its approach regarding sustainability to better meet the evolving needs of its stakeholders most importantly its clients.In this context,DWS remains committed to
71、 sustainability with a focus on climate and stakeholder engagement.9 Deutsche Bank Group results Earnings Report as of March 31,2023 Group results Deutsche Banks profit before tax was 1.9 billion for the first quarter of 2023,up 12%year on year.Post-tax profit was up 8%to 1.3 billion.Post-tax return
72、 on average tangible shareholders equity(RoTE)was 8.3%,up from 8.1%in the prior year quarter.Post-tax return on average shareholders equity was 7.4%in the quarter,up from 7.2%in the first quarter of 2022.Diluted earnings per share were 0.61,up from 0.55 in the prior year quarter.The cost/income rati
73、o improved to 71%,from 73%in the first quarter of 2022.Deutsche Banks results include annual bank levies of 473 million,recognized in the first quarter.Assuming an equal distribution of the annual bank levy across the four quarters of 2023 and a three-month pro rata(three twelfths)share in the first
74、 quarter,profit before tax would have been 2.2 billion and post-tax profit would have been 1.6 billion in the quarter.Post-tax RoTE would have been 10.0%and the cost/income ratio would have been 67%,reflecting substantial progress towards the banks 2025 targets for post-tax RoTE of above 10%and a co
75、st/income ratio below 62.5%.The banks businesses contributed as follows to the banks key target ratios:Corporate Bank:post-tax RoTE of 18.3%and cost/income ratio of 55%Investment Bank:post-tax RoTE of 8.5%and cost/income ratio of 67%Private Bank:post-tax RoTE of 5.3%and cost/income ratio of 78%Asset
76、 Management:post-tax RoTE of 13.6%and cost/income ratio of 74%Revenue growth in challenging conditions Net revenues were 7.7 billion,up 5%over the prior year quarter and the highest quarterly net revenues since 2016,despite business exits as part of the banks transformation programme and challenging
77、 conditions in financial markets during the quarter.This compares to the banks target for compound annual revenue growth of between 3.5%and 4.5%through 2025.In the businesses,net revenues were as follows:Corporate Bank net revenues were 2.0 billion,up 35%year on year,the highest quarterly revenues s
78、ince the launch of Deutsche Banks transformation programme,reflecting significant year-on-year growth across all regions and businesses.Growth was driven by year-on-year growth of 71%in net interest income and continued pricing discipline.Fee income rose 1%year on year.Revenues in Corporate Treasury
79、 Services grew by 32%,Institutional Client Services revenues rose 28%and Business Banking revenues were up 59%Investment Bank net revenues were 2.7 billion,down 19%from the very strong first quarter of 2022.Fixed Income&Currencies(FIC)revenues declined by 17%,partly reflecting a significant contribu
80、tion from episodic items in the prior year quarter which did not recur.Rates revenues were higher than the strong prior year quarter,while Credit Trading revenues were lower,reflecting the non-recurrence of a concentrated distressed position in the prior year quarter,partly offset by growth in flow
81、credit revenues.Financing revenues were lower,impacted by the non-recurrence of other episodic revenue events in the prior year.Foreign Exchange revenues were significantly lower,reflecting heightened interest rate volatility and market dislocation during March.Origination&Advisory revenues were dow
82、n 31%,reflecting lower industry fee pools and lower issuance activity against the backdrop of continued macro-economic and geo-political uncertainties.Advisory revenues were lower,although by less than industry average(source:Dealogic)Private Bank net revenues were 2.4 billion,up 10%year on year,dri
83、ven by strong net interest income.Revenues in the Private Bank Germany were up 14%year on year,while the International Private Bank grew revenues by 3%.Net inflows were 6 billion during the quarter,driven by inflows into investment products.Assets under Management grew by 13 billion to 531 billion d
84、uring the quarter,more than reversing the decline of the previous quarter,driven by net inflows into investment products and rising market levels Asset Management net revenues were 589 million,down 14%compared to the prior year quarter.This primarily reflected an 8%decline in management fees to 571
85、million,largely due to market-driven declines in Assets under Management during 2022.Performance and transaction fees declined 58%to 11 million.Net inflows were 6 billion,or 9 billion ex-cash,compared to net outflows of 2 billion in the previous quarter.Assets under Management grew by 19 billion to
86、841 billion at the end of the first quarter,reflecting positive net inflows and rising market levels 10 Deutsche Bank Group results Earnings Report as of March 31,2023 Noninterest expenses essentially flat year on year Noninterest expenses were 5.5 billion in the quarter,up 1%compared to the prior y
87、ear quarter and including annual bank levies of 473 million.Adjusted costs were 5.4 billion,flat year on year,while adjusted costs ex-bank levies were up 5%to 4.9 billion.This development reflects investments in business growth,technology and controls in line with the banks strategy.The bank is curr
88、ently implementing additional efficiency measures across the front office and infrastructure.These include strict limitations on hiring in non-client-facing areas,focused reductions in management layers,streamlining the mortgage platform and further downsizing of the technology centre in Russia.Cred
89、it provisions:year on year growth reflects macroeconomic developments Provision for credit losses was 372 million in the quarter,up from 292 million in the first quarter of 2022 and 30 basis points of average loans.The year-on-year development included a rise in provision for credit losses in the Pr
90、ivate Bank to 267 million,up from 101 million in the prior year quarter,driven by a small number of idiosyncratic events in the International Private Bank,while the quality of the overall portfolio remained solid.Provision for non-performing(Stage 3)loans was 397 million,up from 114 million in the p
91、rior year quarter.These were partly offset by net releases of performing(Stage 1 and 2)loans of 26 million,reflecting a modest improvement in the economic outlook since year end 2022 and lower levels of provisioning in the Corporate Bank.For the full year 2023,provision for credit losses is expected
92、 to remain within the previously communicated range of 25-30 basis points of average loans.Capital and liquidity in line with goals and capital distribution plans reaffirmed The Common Equity Tier 1(CET1)capital ratio strengthened to 13.6%at quarter end,ahead of the banks ambition of around 13%,up f
93、rom 13.4%in the previous quarter and the highest level for eight quarters.Strong organic capital generation through higher profitability more than offset the impact of deductions for common share dividends and equity compensation.Risk weighted assets were 360 billion at the end of the quarter,unchan
94、ged from the previous quarter and down slightly from 364 billion at the end of the prior year quarter.The Leverage ratio was 4.6%at the end of the first quarter,essentially unchanged from the end of the previous quarter.At 4.6%,the leverage ratio was also consistent with the prior year quarter,which
95、 excluded certain central bank cash balances in accordance with EU regulation then in effect;including these balances,the leverage ratio at the end of the prior year quarter would have been 4.3%.Leverage exposure was 1,238 billion at quarter end,essentially unchanged from the end of the previous qua
96、rter.The Liquidity Coverage Ratio strengthened to 143%at the end of the quarter,from 142%at the end of the previous quarter,above the regulatory requirement of 100%and a surplus of 63 billion.Liquidity reserves were 241 billion,compared to 256 billion at the end of the previous quarter,including Hig
97、h Quality Liquid Assets of 208 billion.The Net Stable Funding Ratio was 120%,at the high end of the banks target range of 115-120%,with a surplus of 100 billion above required levels.For Deutsche Banks Annual General Meeting on May 17,2023,the Management Board and the Supervisory Board have formally
98、 proposed payment of a cash dividend of 0.30 per share in respect of 2022,up 50%from 2021.This reflects the banks commitment to its capital distribution ambitions as set out in the Global Hausbank strategy announced in March 2022.Deutsche Bank remains fully committed to further capital distributions
99、 in 2023.Given the banks strong first quarter performance and further improved capital ratios,management has initiated a dialogue with supervisors to enable 2023 share repurchases and currently expects to commence buybacks in the second half of 2023.11 Deutsche Bank Group results Earnings Report as
100、of March 31,2023 Accelerating the Global Hausbank strategy Deutsche Bank also announced additional measures aimed at accelerating execution of its Global Hausbank strategy.These include:Operational efficiency:targeting additional efficiency measures to raise the banks ambition for incremental cost s
101、avings from 2.0 to 2.5 billion.Specific measures include workforce reductions in non-client facing staff;further streamlining the mortgage platform;optimization of the retail distribution network,and improved operations by automating processes Capital efficiency:reducing 15 to 20 billion in risk wei
102、ghed assets by 2025 from lower-yielding portfolios and from optimization with minimal revenue impact;enabling redeployment and distributions to shareholders and thereby improving RoTE.Specific measures include reducing mortgage originations and sub-hurdle lending;reducing balance sheet intensity thr
103、ough increased securitization;optimized hedging;and enhanced risk models and processes Revenue growth:aiming to outperform on previously communicated revenue targets through platform growth in capital-light businesses.Specific measures include investments in technology,selective hiring and additiona
104、l growth initiatives in the Corporate Bank and Investment Bank;investments in digital and direct sales and accelerated hiring in Wealth Management in the Private Bank;and in Asset Management,the expansion of Passive and Alternatives together with strategic partnerships and product innovations Sustai
105、nable Finance:further progress across businesses Environmental,Social and Governance(ESG)-related financing and investment volumes ex-DWS were 22 billion in the quarter,bringing the cumulative total since January 1,2020,to 238 billion.In the first quarter,Deutsche Banks businesses contributed as fol
106、lows:Corporate Bank:3 billion in sustainable financing,raising the business cumulative total since January 1,2020,to 43 billion Investment Bank:14 billion,comprising 4 billion in sustainable financing and 9 billion in capital market issuance,for a cumulative total of 142 billion Private Bank:5 billi
107、on growth in ESG Assets under Management and 1 billion in ESG new client lending,raising the Private Banks cumulative total to 53 billion Sustainability remains one of Deutsche Banks strategic priorities and the bank demonstrated this by hosting its second Sustainability Deep Dive on March 2,2023 at
108、 which an update was provided on the business strategies as well as on its policies and commitments.This included a tightened thermal coal policy as well as the ambition to encourage corporate clients to commit to net zero.12 Deutsche Bank Group results Earnings Report as of March 31,2023 Group resu
109、lts at a glance Three months ended in m.(unless stated otherwise)Mar 31,2023 Mar 31,2022 Absolute Change Change in%Net revenues:Of which:Corporate Bank(CB)1,973 1,462 511 35 Investment Bank(IB)2,691 3,323 (632)(19)Private Bank(PB)2,438 2,220 218 10 Asset Management(AM)589 682 (93)(14)Corporate&Other
110、(C&O)(10)(359)349 (97)Total net revenues 7,680 7,328 353 5 Provision for credit losses 372 292 79 27 Noninterest expenses:Compensation and benefits 2,696 2,657 39 1 General and administrative expenses 2,761 2,764 (3)(0)Impairment of goodwill and other intangible assets 0 0 0 N/M Restructuring activi
111、ties 0 (43)44 N/M Total noninterest expenses 5,457 5,377 79 1 Profit(loss)before tax 1,852 1,658 194 12 Income tax expense(benefit)531 431 100 23 Profit(loss)1,322 1,227 95 8 Profit(loss)attributable to noncontrolling interests 25 40 (14)(36)Profit(loss)attributable to Deutsche Bank shareholders and
112、 additional equity components 1,296 1,187 110 9 Profit(loss)attributable to additional equity components 138 126 12 10 Profit(loss)attributable to Deutsche Bank shareholders 1,158 1,060 98 9 Post-tax return on average tangible shareholders equity2,3 8.3%8.1%0.2ppt N/M Cost/income ratio 71.0%73.4%(2.
113、3)ppt N/M Common Equity Tier 1 capital ratio 13.6%12.8%0.8ppt N/M Loans(gross of allowance for loan losses,in bn)1 488 481 7 1 Deposits(in bn)1 592 604 (12)(2)Risk-weighted assets(in bn)1 360 364 (5)(1)of which:operational risk RWA(in bn)1 59 60 (1)(2)Leverage exposure(in bn)1 1,238 1,164 74 6 Emplo
114、yees(full-time equivalent)1 86,712 83,000 3,712 4 Post-tax return on average shareholders equity2,3 7.4%7.2%0.2ppt N/M Leverage ratio(reported/phase-in)4.6%4.6%0.1ppt N/M N/M Not meaningful Prior years comparatives aligned to presentation in the current year 1 As of quarter-end 2 Based on profit(los
115、s)attributable to Deutsche Bank shareholders after AT1 coupon;for further information please refer to“Non-GAAP financial measures”in this report 3 The post-tax return on average tangible shareholders equity and average shareholders equity at the Group level reflects the reported effective tax rate f
116、or the Group,which was 29%for the first quarter of 2023 and 26%for the first quarter of 2022;for further information please refer to“Non-GAAP financial measures”in this report 13 Deutsche Bank Segment results Earnings Report as of March 31,2023 Segment results Corporate Bank Profit before tax was 82
117、2 million in the quarter,more than triple the prior year quarter and the highest quarterly profit before tax since the creation of the Corporate Bank in 2019.Post-tax RoTE was 18.3%,up from 5.9%in the prior year quarter,and post-tax RoE was 16.9%,up from 5.4%.The cost/income ratio improved to 55%,fr
118、om 73%in the first quarter of 2022.Net revenues were 2.0 billion,35%higher year on year.Revenue growth was driven by increased interest rates and continued pricing discipline,with net interest income up 71%,and commissions and fee income up 1%,compared to the prior year quarter.Deposits declined by
119、1%,or 2 billion year on year,while loans gross of allowances were down 3%,or 4 billion compared to the first quarter of 2022 but essentially flat compared to previous quarter.All of the Corporate Banks businesses contributed to revenue growth.Corporate Treasury Services net revenues were 1.2 billion
120、,up 32%year on year.Institutional Client Services net revenues were 447 million,28%higher year on year.Business Banking net revenues were 337 million,up by 59%year on year.Noninterest expenses were 1.1 billion,up 2%year on year,as lower bank levies were offset by higher service relationship expenses
121、 compared to the prior year quarter.Provision for credit losses was 64 million in the quarter,57%lower year on year.Provisions remained contained despite a more challenging macroeconomic environment compared with the prior year quarter and were primarily driven by one large Stage 3 event.14 Deutsche
122、 Bank Segment results Earnings Report as of March 31,2023 Corporate Bank results at a glance Three months ended in m.(unless stated otherwise)Mar 31,2023 Mar 31,2022 Absolute Change Change in%Net revenues:Corporate Treasury Services 1,188 899 289 32 Institutional Client Services 447 350 97 28 Busine
123、ss Banking 337 212 125 59 Total net revenues 1,973 1,462 511 35 Of which:Net interest income 1,333 780 553 71 Commissions and fee income 576 569 6 1 Remaining income 64 112 (48)(43)Provision for credit losses 64 148 (84)(57)Noninterest expenses:Compensation and benefits 361 353 8 2 General and admin
124、istrative expenses 725 715 10 1 Impairment of goodwill and other intangible assets 0 0 0 N/M Restructuring activities 0 (0)0 N/M Total noninterest expenses 1,086 1,067 19 2 Noncontrolling interests 0 0 0 N/M Profit(loss)before tax 822 246 576 N/M Employees(front office,full-time equivalent)1 7,524 7
125、,415 110 1 Employees(business-aligned operations,full-time equivalent)1 6,853 5,916 938 16 Employees(allocated central infrastructure,full-time equivalent)1 8,598 7,420 1,178 16 Total employees(full-time equivalent)1 22,976 20,750 2,225 11 Total assets(in bn)1,2 248 249 (1)(0)Risk-weighted assets(in
126、 bn)1 74 71 3 4 of which:operational risk RWA(in bn)1 5 5 (0)(3)Leverage exposure(in bn)1 310 305 5 2 Deposits(in bn)1 269 271 (2)(1)Loans(gross of allowance for loan losses,in bn)1 121 125 (4)(3)Cost/income ratio 55.1%73.0%(18.0)ppt N/M Post-tax return on average shareholders equity3,4 16.9%5.4%11.
127、5ppt N/M Post-tax return on average tangible shareholders equity3,4 18.3%5.9%12.4ppt N/M N/M Not meaningful Prior years comparatives aligned to presentation in the current year 1 As of quarter-end 2 Segment assets represent consolidated view,i.e.,the amounts do not include intersegment balances 3 Ba
128、sed on profit(loss)attributable to Deutsche Bank shareholders after AT1 coupon;for further information please refer to“Non-GAAP Financial Measures”in this report 4 For the post-tax return on average tangible shareholders equity and average shareholders equity of the segments,the Group effective tax
129、rate was adjusted to exclude the impact of permanent differences not attributed to the segments,so that the segment tax rates were 28%for the first quarter of 2023 and all quarters of 2022;for further information please refer to“Non-GAAP Financial Measures”in this report 15 Deutsche Bank Segment res
130、ults Earnings Report as of March 31,2023 Investment Bank Profit before tax was 861 million,down 42%year on year.Post-tax RoTE was 8.5%and post-tax RoE was 8.2%compared to 16.6%and 15.9%respectively in the prior year quarter.The cost/income ratio was 67%,compared to 54%in the prior year quarter.Net r
131、evenues were 2.7 billion,down 19%year on year.Revenues in FIC Sales&Trading were lower than a very strong first quarter of 2022,partly reflecting a significant contribution from episodic items in the prior year quarter which did not recur on the current quarter,and changes in the market environment.
132、Origination and Advisory revenues also declined in line with a lower industry fee pool(source:Dealogic).FIC Sales&Trading revenues were 2.4 billion,down 17%year on year compared to an exceptionally strong prior year quarter.In Rates,revenues were higher against a very strong prior year quarter.Emerg
133、ing Markets revenues were lower,driven by the non-recurrence of exceptional client activity in the Central&Eastern Europe,Middle East&Africa region in the prior year.Credit Trading revenues were lower,reflecting the non-recurrence of a concentrated distressed credit position in the prior year,though
134、 this was partly offset by growth in flow credit revenues.Financing revenues were impacted by the non-recurrence of other episodic revenue events in the prior year.Foreign Exchange revenues were significantly lower,reflecting heightened interest rate volatility and market dislocation seen during Mar
135、ch.Origination&Advisory revenues were 327 million,down 31%year on year,in line with the year-on-year decline in the industry fee pool.Debt Origination revenues were significantly lower as the leveraged loan market remained muted,although High Yield activity showed signs of partial recovery prior to
136、the market disruption in March.Investment Grade debt revenues also declined,as did the industry fee pool.Equity Origination revenues were lower in a challenging market with low issuance activity.Advisory revenues were also significantly lower than in the prior year quarter but decreased by less than
137、 the industry average(source:Dealogic).Noninterest expenses were 1.8 billion in the quarter,essentially flat year on year.A year-on-year reduction in bank levies was offset by slight increases in service relationships and nonoperating costs.Provision for credit losses was 41 million in the quarter,o
138、r 16 basis points of average loans.The slight year-on-year increase was driven by higher Stage 3 impairments,largely offset by reduced Stage 1 and 2 provisions,as forward-looking indicators reflected an expected improvement in the macro-economic environment.16 Deutsche Bank Segment results Earnings
139、Report as of March 31,2023 Investment Bank results at a glance Three months ended in m.(unless stated otherwise)Mar 31,2023 Mar 31,2022 Absolute Change Change in%Net revenues:Fixed Income,Currency(FIC)Sales&Trading 2,360 2,840 (481)(17)Debt Origination 213 307 (94)(31)Equity Origination 21 34 (12)(3
140、6)Advisory 92 134 (42)(31)Origination&Advisory 327 474 (148)(31)Other 5 9 (4)(47)Total net revenues 2,691 3,323 (632)(19)Provision for credit losses 41 36 5 14 Noninterest expenses:Compensation and benefits 612 611 1 0 General and administrative expenses 1,178 1,184 (5)(0)Impairment of goodwill and
141、other intangible assets 0 0 0 N/M Restructuring activities 1 1 (0)(22)Total noninterest expenses 1,792 1,796 (5)(0)Noncontrolling interests (2)1 (3)N/M Profit(loss)before tax 861 1,490 (629)(42)Employees(front office,full-time equivalent)1 4,354 4,225 130 3 Employees(business-aligned operations,full
142、-time equivalent)1 3,484 2,974 510 17 Employees(allocated central infrastructure,full-time equivalent)1 11,280 9,872 1,408 14 Total employees(full-time equivalent)1 19,118 17,071 2,047 12 Total assets(in bn)1,2 664 664 0 0 Risk-weighted assets(in bn)1 142 145 (2)(2)of which:operational risk RWA(in b
143、n)1 23 25 (1)(5)Leverage exposure(in bn)1 541 547 (6)(1)Deposits(in bn)1 11 13 (3)(20)Loans(gross of allowance for loan losses,in bn)1 103 94 9 10 Cost/income ratio 66.6%54.0%12.5ppt N/M Post-tax return on average shareholders equity3,4 8.2%15.9%(7.7)ppt N/M Post-tax return on average tangible share
144、holders equity3,4 8.5%16.6%(8.1)ppt N/M N/M Not meaningful Prior years comparatives aligned to presentation in the current year 1 As of quarter-end 2 Segment assets represent consolidated view,i.e.,the amounts do not include intersegment balances 3 Based on profit(loss)attributable to Deutsche Bank
145、shareholders after AT1 coupon;for further information please refer to“Non-GAAP Financial Measures”in this report 4 For the post-tax return on average tangible shareholders equity and average shareholders equity of the segments,the Group effective tax rate was adjusted to exclude the impact of perman
146、ent differences not attributed to the segments,so that the segment tax rates were 28%for the first quarter of 2023 and all quarters of 2022;for further information please refer to“Non-GAAP Financial Measures”in this report 17 Deutsche Bank Segment results Earnings Report as of March 31,2023 Private
147、Bank Profit before tax was 280 million in the quarter compared to 394 million in the prior year quarter.The decline was primarily attributable to higher provision for credit losses,reflecting a small number of single name losses in the International Private Bank in the current quarter and the non-re
148、currence of restructuring provision releases in the first quarter of 2022.Growth in revenues more than offset increases in the adjusted cost base.The cost/income ratio was 78%,essentially flat compared to the prior year quarter.Post-tax RoTE of 5.3%declined by 3.2 percentage points compared to the p
149、rior year quarter.Post-tax RoE was 4.9%,down from 7.7%in the first quarter of last year.Net revenues were 2.4 billion,up by 10%.This marks the highest quarterly revenue performance since the formation of Private Bank excluding specific items such as gains on sales.Growth was driven by higher net int
150、erest income from deposit products.This more than compensated a decline in fee income,which reflected changes in contractual and regulatory conditions as well as the impact of the current environment.The Private Bank attracted net inflows in Assets under Management(AuM)of 6 billion in the quarter,dr
151、iven by strong investment product inflows,which more than offset modest deposit outflows within Assets under Management.Quarterly loan growth was impacted by lower demand in mortgage loans in Germany and deleveraging activities of clients of the International Private Bank in the current market envir
152、onment.Net revenues in the Private Bank Germany grew by 14%to 1.6 billion in the quarter.Growth,mainly driven by deposit revenues,was supported by higher interest rates.This more than offset a decline in fee income which reflected the aforementioned factors.In the International Private Bank,net reve
153、nues of 888 million were up 3%year on year,or 4%if adjusted for specific revenue items from prior year.Revenue growth reflected higher deposit revenues,partly offset by lower loan and investment product revenues.The latter developments reflect lower client activity in a more challenging environment
154、as well as the impacts of a lower asset base following a decline in market valuations during 2022.Assets under Management in the Private Bank were 531 billion at quarter end.The increase of 13 billion in the quarter was driven by the aforementioned net inflows of 6 billion and a 9 billion impact of
155、higher market levels,which partly reversed the impact from lower market levels of roughly 56 billion seen in 2022.Noninterest expenses were 1.9 billion,up 10%year on year,in part attributable to the non-recurrence of restructuring provision releases recorded in the first quarter of 2022.Adjusted cos
156、ts were up 5%due to higher investment spending and increased internal service cost allocations.Inflationary impacts were mostly offset by continued savings from transformation initiatives,including workforce reductions and branch closures.Provision for credit losses was 267 million,or 40 basis point
157、s of average loans,compared to 101 million in the prior year quarter.This development was largely driven by a small number of single name losses in the International Private Bank.Excluding these items,the development of the overall portfolio continued to reflect the high quality of the loan book,esp
158、ecially in the retail businesses,and ongoing tight risk discipline.18 Deutsche Bank Segment results Earnings Report as of March 31,2023 Private Bank results at a glance Three months ended in m.(unless stated otherwise)Mar 31,2023 Mar 31,2022 Absolute Change Change in%Net revenues:Private Bank German
159、y 1,550 1,357 193 14 International Private Bank 888 863 25 3 Premium Banking 242 244 (2)(1)Wealth Management&Bank for Entrepreneurs 645 618 27 4 Total net revenues 2,438 2,220 218 10 Of which:Net interest income 1,532 1,183 349 29 Commissions and fee income 777 957 (180)(19)Remaining income 130 80 5
160、0 62 Provision for credit losses 267 101 166 164 Noninterest expenses:Compensation and benefits 689 682 7 1 General and administrative expenses 1,202 1,088 114 11 Impairment of goodwill and other intangible assets 0 0 0 N/M Restructuring activities (0)(45)44 (99)Total noninterest expenses 1,891 1,72
161、5 166 10 Noncontrolling interests 0 (0)0 N/M Profit(loss)before tax 280 394 (113)(29)Employees(front office,full-time equivalent)1 21,115 21,813 (697)(3)Employees(business-aligned operations,full-time equivalent)1 5,839 6,019 (180)(3)Employees(allocated central infrastructure,full-time equivalent)1
162、11,103 9,510 1,593 17 Total employees(full-time equivalent)1 38,057 37,342 715 2 Total assets(in bn)1,2 329 316 12 4 Risk-weighted assets(in bn)1 87 87 0 0 of which:operational risk RWA(in bn)1 8 7 1 7 Leverage exposure(in bn)1 340 328 13 4 Deposits(in bn)1 310 316 (6)(2)Loans(gross of allowance for
163、 loan losses,in bn)1 263 258 5 2 Assets under Management(in bn)1,3 531 549 (17)(3)Net flows(in bn)6 10 (4)(39)Cost/income ratio 77.6%77.7%(0.2)ppt N/M Post-tax return on average shareholders equity4,5 4.9%7.7%(2.9)ppt N/M Post-tax return on average tangible shareholders equity4,5 5.3%8.4%(3.2)ppt N/
164、M N/M Not meaningful Prior years comparatives aligned to presentation in the current year 1 As of quarter-end 2 Segment assets represent consolidated view,i.e.,the amounts do not include intersegment balances 3 The Group defines Assets under Management as(a)assets held on behalf of customers for inv
165、estment purposes and/or(b)client assets that are managed by the bank;Assets under Management are managed on a discretionary or advisory basis,or these assets are deposited with the bank;deposits are considered Assets under Management if they serve investment purposes;in the Private Bank Germany and
166、Premium Banking,this includes term deposits and savings deposits;in Wealth Management&Bank for Entrepreneurs,it is assumed that all customer deposits are held with the bank primarily for investment purposes 4 Based on profit(loss)attributable to Deutsche Bank shareholders after AT1 coupon for furthe
167、r information please refer to“Non-GAAP Financial Measures”in this report 5 For the post-tax return on average tangible shareholders equity and average shareholders equity of the segments,the Group effective tax rate was adjusted to exclude the impact of permanent differences not attributed to the se
168、gments,so that the segment tax rates were 28%for the first quarter of 2023 and all quarters of 2022;for further information please refer to“Non-GAAP Financial Measures”in this report 19 Deutsche Bank Segment results Earnings Report as of March 31,2023 Asset Management Profit before tax was 115 milli
169、on in the first quarter,a 44%decrease over the prior year period,primarily driven by lower revenues which reflected declines in market levels during 2022.Post-tax RoTE was 13.6%,down from 25.5%in the prior year quarter,and post-tax RoE was 5.8%,down from 11.0%.The cost/income ratio rose to 74%in the
170、 quarter,up by 12 percentage points over the prior year quarter.Net revenues were 589 million,down 14%over the prior year quarter.This was due to lower Management fees,which were down 8%to 571 million,predominantly due to declining market levels during 2022.Performance and transaction fees were 11 m
171、illion,compared to 26 million in the prior year quarter.Noninterest expenses were 436 million in the quarter,up 3%year on year.Adjusted costs were 426 million,up by 1%.While compensation and benefits costs dropped due to lower carried interests,general and administrative expenses increased,partly du
172、e to higher costs for service relationships and non-operating costs.Net flows were 6 billion in the quarter.Excluding cash,net inflows were 9 billion,driven by Active(ex-Cash)product inflows of 6 billion and Passive product inflows of 4 billion including Xtrackers.These more than offset outflows of
173、3 billion in low-margin cash products,partly reflecting a rising interest rate environment,and of 1 billion in Alternatives.ESG products attracted net inflows of 1 billion.Assets under Management rose by 19 billion,or 2%,to 841 billion during the quarter.This increase was mainly due to rising market
174、 levels and net inflows during the quarter,while exchange rate movements had a negative impact.Compared to the prior year quarter,Assets under Management have decreased by 7%,primarily driven by the aforementioned declines in market levels during 2022.20 Deutsche Bank Segment results Earnings Report
175、 as of March 31,2023 Asset Management results at a glance Three months ended in m.(unless stated otherwise)Mar 31,2023 Mar 31,2022 Absolute Change Change in%Net revenues:Management Fees 571 621 (50)(8)Performance and transaction fees 11 26 (15)(58)Other 7 35 (28)(80)Total net revenues 589 682 (93)(1
176、4)Provision for credit losses (1)0 (1)N/M Noninterest expenses:Compensation and benefits 222 230 (7)(3)General and administrative expenses 213 192 21 11 Impairment of goodwill and other intangible assets 0 0 0 N/M Restructuring activities 1 0 0 28 Total noninterest expenses 436 422 14 3 Noncontrolli
177、ng interests 39 55 (15)(28)Profit(loss)before tax 115 206 (91)(44)Employees(front office,full-time equivalent)1 1,994 1,887 107 6 Employees(business-aligned operations,full-time equivalent)1 2,303 2,254 49 2 Employees(allocated central infrastructure,full-time equivalent)1 521 446 75 17 Total employ
178、ees(full-time equivalent)1 4,818 4,587 231 5 Total assets(in bn)1,2 10 11 (1)(9)Risk-weighted assets(in bn)1 13 14 (1)(5)of which:operational risk RWA(in bn)1 3 3 0 4 Leverage exposure(in bn)1 9 10 (1)(7)Assets under Management(in bn)1 841 902 (62)(7)Net flows(in bn)6 (1)7 N/M Cost/income ratio 74.0
179、%61.8%12.2ppt N/M Post-tax return on average shareholders equity3,4 5.8%11.0%(5.2)ppt N/M Post-tax return on average tangible shareholders equity3,4 13.6%25.5%(11.9)ppt N/M N/M Not meaningful Prior years comparatives aligned to presentation in the current year 1 As of quarter-end 2 Segment assets re
180、present consolidated view,i.e.,the amounts do not include intersegment balances 3 Based on profit(loss)attributable to Deutsche Bank shareholders after AT1 coupon,for further information please refer to“Non-GAAP Financial Measures”in this report 4 For the post-tax return on average tangible sharehol
181、ders equity and average shareholders equity of the segments,the Group effective tax rate was adjusted to exclude the impact of permanent differences not attributed to the segments,so that the segment tax rates were 28%for the first quarter of 2023 and all quarters of 2022;for further information ple
182、ase refer to“Non-GAAP Financial Measures”in this report 21 Deutsche Bank Segment results Earnings Report as of March 31,2023 Corporate&Other Corporate&Other reported a loss before tax of 226 million in the first quarter of 2023,compared to a loss before tax of 677 million in the prior year quarter.T
183、his development reflected higher revenues together with lower noninterest expenses.Net revenues were negative 10 million in the quarter,compared to negative 359 million in the prior year quarter.The improvement was primarily driven by revenues relating to valuation and timing differences of positive
184、 239 million,compared to negative 183 million in the prior year quarter.Revenues related to funding and liquidity were negative 103 million in the first quarter of 2023,compared to negative 115 million in the prior year quarter.Noninterest expenses were 252 million in the quarter,down 31%compared to
185、 367 million in the prior year quarter,primarily driven by lower expenses relating to legacy portfolios,previously reported as the Capital Release Unit.Expenses associated with shareholder activities as defined in the OECD Transfer Pricing guidelines not allocated to the business divisions were 124
186、million in the quarter,essentially flat year on year.Noncontrolling interests are reversed in C&O after deduction from the divisional profit before tax.These were positive 37 million for the quarter,down from positive 56 million in the prior year quarter,and were mainly related to DWS.Risk-weighted
187、assets stood at 43 billion at the end of the first quarter,including 19 billion of operational risk RWA,down 3 billion since the fourth quarter of 2022 and down 5 billion compared to the prior year quarter.Corporate&Other results at a glance Three months ended in m.(unless stated otherwise)Mar 31,20
188、23 Mar 31,2022 Absolute Change Change in%Net revenues (10)(359)349 (97)Provision for credit losses 1 7 (6)(82)Noninterest expenses:Compensation and benefits 811 781 30 4 General and administrative expenses (558)(414)(144)35 Impairment of goodwill and other intangible assets 0 0 0 N/M Restructuring a
189、ctivities (1)0 (1)N/M Total noninterest expenses 252 367 (115)(31)Noncontrolling interests (37)(56)19 (33)Profit(loss)before tax (226)(677)451 (67)Employees(C&O,net,full-time equivalent)1 1,743 3,250 (1,507)(46)Employees(central infrastructure allocated to businesses,full-time equivalent)1 31,502 27
190、,248 4,254 16 Total Employees(full-time equivalent)1 33,245 30,498 2,747 9 Risk-weighted assets(in bn)1 43 48 (5)(10)Leverage exposure(in bn)1 37 57 (20)(35)N/M Not meaningful Prior years comparatives aligned to presentation in the current year 1 As of quarter-end 22 Deutsche Bank Consolidated balan
191、ce sheet Earnings Report as of March 31,2023 Consolidated balance sheet Assets in m.Mar 31,2023 Dec 31,2022 Cash and central bank balances 160,777 178,896 Interbank balances(without central banks)5,863 7,195 Central bank funds sold and securities purchased under resale agreements 10,016 11,478 Secur
192、ities borrowed 24 (0)Financial assets at fair value through profit or loss Trading assets 110,901 92,867 Positive market values from derivative financial instruments 246,299 299,686 Non-trading financial assets mandatory at fair value through profit and loss 99,854 89,654 Financial assets designated
193、 at fair value through profit or loss 167 168 Total financial assets at fair value through profit or loss 457,220 482,376 Financial assets at fair value through other comprehensive income 29,087 31,675 Equity method investments 1,074 1,124 Loans at amortized cost 482,642 483,700 Property and equipme
194、nt 6,101 6,103 Goodwill and other intangible assets 7,088 7,092 Other assets1 138,408 118,293 Assets for current tax 1,594 1,584 Deferred tax assets 6,883 7,272 Total assets 1,306,777 1,336,788 Liabilities and equity in m.Mar 31,2023 Dec 31,2022 Deposits 591,937 621,456 Central bank funds purchased
195、and securities sold under repurchase agreements 451 573 Securities loaned 9 13 Financial liabilities at fair value through profit or loss Trading liabilities 57,276 50,616 Negative market values from derivative financial instruments 231,823 282,353 Financial liabilities designated at fair value thro
196、ugh profit or loss 81,048 54,634 Investment contract liabilities 479 469 Total financial liabilities at fair value through profit or loss 370,625 388,072 Other short-term borrowings 4,908 5,122 Other liabilities1 133,387 113,714 Provisions 2,759 2,449 Liabilities for current tax 512 388 Deferred tax
197、 liabilities 621 650 Long-term debt 127,680 131,525 Trust preferred securities 508 500 Total liabilities 1,233,397 1,264,460 Common shares,no par value,nominal value of 2.56 5,223 5,291 Additional paid-in capital 39,861 40,513 Retained earnings 19,286 17,800 Common shares in treasury,at cost (60)(33
198、1)Accumulated other comprehensive income(loss),net of tax (1,270)(1,314)Total shareholders equity 63,041 61,959 Additional equity components 8,540 8,578 Noncontrolling interests 1,798 1,791 Total equity 73,380 72,328 Total liabilities and equity 1,306,777 1,336,788 1 Includes non-current assets and
199、disposal groups held for sale 23 Deutsche Bank Consolidated balance sheet Earnings Report as of March 31,2023 Movements in assets and liabilities As of March 31,2023,the total balance sheet of 1.3 trillion was essentially flat compared to year end 2022.Deposits decreased by 29.5 billion,mainly in th
200、e Corporate and Institutional Cash Management business in Corporate Bank,driven by increased price competition,normalization from elevated levels in the prior two quarters and market volatility at the end of the quarter.In the Private Bank,deposits have reduced primarily due to migration into higher
201、 yielding investment products and continued inflationary pressure impacting retail clients.This decline in deposits was the primary driver of 19.5 billion decrease in cash,central bank and interbank balances.Central bank funds sold,securities purchased under resale agreements and securities loaned a
202、cross all applicable measurement categories increased by 7.8 billion,mainly driven by higher client activity and short coverage requirements.Corresponding liabilities increased by 24.7 billion,mainly attributable to increased secured funding of trading inventory.Trading assets and liabilities increa
203、sed by 18.0 billion and 6.7 billion,respectively,mainly due to increased exposure in government securities from higher client flows and desk positioning in relation to the current environment.Positive and negative market values of derivative financial instruments decreased by 53.4 billion and 50.5 b
204、illion,respectively,primarily driven by moves in foreign exchange products in Investment Bank,mainly due to the weakening of the U.S.dollar against the euro and market volatility.Long term debt decreased by 3.8 billion as a result of prepayment of TLTRO funding,partly offset by new issuances during
205、the quarter.Other assets increased by 20.1 billion,mainly driven by increases in brokerage and securities related receivables of 19.4 billion.This was mainly attributable to higher receivables from pending settlements of regular way trades following the seasonality pattern the bank typically observe
206、s of lower year-end levels versus higher volumes over the course of the year.This seasonality pattern was also reflected in an increase in brokerage and securities related payables by 16.7 billion,driving the 19.7 billion increase in other liabilities.The overall movement of the balance sheet includ
207、ed a decrease of 8.5 billion due to foreign exchange rate movements,mainly driven by a weakening of the U.S.Dollar against the Euro.The effects of foreign exchange rate movements are embedded in the movements of the balance sheet line items discussed in this section.Liquidity Total High Quality Liqu
208、id Assets(HQLA)as defined by the Commission Delegated Regulation(EU)2015/61 and amended by Regulation(EU)2018/1620 were 208 billion as of March 31,2023,compared to 219 billion as of December 31,2022.The decrease is primarily driven by reduction of Corporate and Private Bank deposits offset by an inc
209、rease in capital market issuances and a reduction in loans.The Group maintains additional highly liquid central bank eligible assets,not qualifying as HQLA or subject to transfer restrictions under the HQLA definition.These additional liquid assets were 33 billion as at the end of March 31,2023,such
210、 that the Groups total Liquidity Reserves were 241 billion.The Liquidity Coverage Ratio was 143%in the first quarter of 2023,a surplus to regulatory requirements of 63 billion.Equity Total equity as of March 31,2023,increased by 1.1 billion compared to December 31,2022.This change was driven by a nu
211、mber of factors including the profit reported for the period of 1.3 billion,treasury shares distributed under share-based compensation plans of 378 million and remeasurement gains related to defined benefit plans of 190 million,net of tax.Further contributing factors include unrealized net gains on
212、accumulated other comprehensive income,mainly attributable to financial assets at fair value through other comprehensive income of 245 million,net of tax and unrealized net gains on derivatives hedging cash flows of 207 million,net of tax.These were partially offset by a negative impact from foreign
213、 currency translation of 444 million,net of tax,mainly resulting from the weakening of the U.S.dollar against the Euro,net purchases of treasury shares of 407 million and a net change in share awards for the period of 382 million.On February 28,2023,Deutsche Bank cancelled 27 million of its common s
214、hares.The cancellation reduced the nominal value of the shares by 68 million.The cancelled shares had been held in common shares in treasury,at their acquisition cost of 300 million.The difference between the common shares at cost and their nominal value has reduced additional paid-in capital by 232
215、 million.The shares had already been deducted from the reported total equity on December 31,2022.Therefore,the cancellation did not reduce the reported total equity in the first quarter 2023.24 Deutsche Bank Outlook Earnings Report as of March 31,2023 Outlook The following section provides an overvi
216、ew of updates to the outlook for the Group and business divisions for the financial year 2023 and should be read in conjunction with the Outlook section in the Combined Management Report provided in the Annual Report 2022.Macroeconomic and Banking Industry Outlook The outlook for the global economy
217、slightly improved for 2023.However,core inflation remains persistent despite energy cost pressures having peaked.Central banks are expected to curtail rate hikes due to the lagged effects of the tightening measures already implemented.The Group currently expects global GDP growth and inflation to be
218、 at 2.8%and 6.6%,respectively,for 2023.The Eurozone economy is likely to avoid a recession in the first half of the year and could see a rather muted recovery during summer,although inflation-related loss of purchasing power could weaken demand of private households over the year.Additional headwind
219、s could come from the ECBs monetary tightening.Global economic momentum is expected to see support from the recovery of the Chinese economy.On the other hand,a recession in the U.S.,which is expected to set in during the second half of the year,would reduce external demand and thus slow down global
220、growth.Banks globally are expected to continue to benefit from higher interest rates in 2023,albeit to a lesser extent than before,supporting net interest income.Higher interest rates may dampen demand for credit,while supply conditions will probably tighten as banks become more cautious in taking r
221、isks.As a result,lending dynamics could slow meaningfully.Deposit funding costs might rise as well,reflecting greater competition for funding and a diminishing lag effect as the rate cycle matures.In addition,given the risks from a deteriorating commercial real estate and housing market,loan loss pr
222、ovisions may rise.Banks may be more affected by this in the U.S.than in Europe given their provisions are based on a lifetime expected loss model,which usually results in greater volatility,along with the weaker macroeconomic outlook for the U.S.in 2024.Capital market revenues could be mixed,with el
223、evated volatility impacting segments differently.Overall,the absolute level of profitability might not remain as strong as in the previous year,but nonetheless is expected to be robust in the U.S.as well as Europe.Recent concerns about the global banking industry have been caused by idiosyncratic is
224、sues at some institutions,especially in the U.S.,and broader uncertainty about the impact of tighter monetary policy.However,the banking systems fundamentals are very strong.In Europe,profitability is at a post financial crisis high and non-performing loans are at a 15-year low,while capital and liq
225、uidity ratios remain close to record levels.In the U.S.,net profits have stayed near their all-time high,despite a normalization in loan loss provisions.The global economic outlook is impacted by several risks.While inflation seems to have peaked,it remains well above central bank targets and is lik
226、ely to be persistent.Failure to bring down inflation could lead to central banks keeping monetary policy tighter for longer,which would affect financial markets and increase the risk of a recession.Geopolitical risks remain elevated due to the war in Ukraine and the tensions between China and Taiwan
227、;also,the strategic competition U.S.versus China could possibly continue to intensify.A recession in the U.S.is expected in the second half of 2023,but there is a risk that it could occur sooner.Deutsche Bank Outlook In March 2022,Deutsche Bank outlined its strategic and financial road map through 2
228、025,referred to as the Global Hausbank strategy,and communicated the banks 2025 financial targets and capital objectives.In addition,the bank is working to refine and accelerate its Global Hausbank strategy with measures which,if successfully implemented,could allow the bank to outperform its 2025 f
229、inancial targets.Deutsche Bank reaffirms its financial targets to be achieved by 2025 of a post-tax return on average tangible equity of above 10%,a compound annual revenue growth in revenues of between 3.5%and 4.5%for 2021 to 2025 and a cost/income ratio of below 62.5%.The bank also confirms its ca
230、pital objectives of a CET1 capital ratio of around 13%and a payout ratio of 50%from 2025 onwards.Deutsche Bank is managing the Groups cost base towards its 2025 cost/income ratio target.The Group remains highly focused on cost discipline and delivery of the initiatives underway,with incremental oper
231、ational efficiencies in the process of being implemented.25 Deutsche Bank Outlook Earnings Report as of March 31,2023 In 2023,Group revenues are expected to be slightly higher compared to the prior year.Deutsche Bank expects revenues to be in the middle of the range of 28 billion to 29 billion at Gr
232、oup level reflecting the positive impact of interest rates,particularly in the Corporate and Private Bank,and robust organic business growth,partly offset by some normalization in other businesses,notably FIC.Corporate Bank expects the interest rate environment and progress on its initiatives to sup
233、port the performance in 2023,despite macro-economic uncertainties.Revenues are expected to be higher compared to the prior year,driven by further improvements in interest rates and growth initiatives.Corporate Treasury Services revenues are anticipated to be higher due to strong momentum in the Corp
234、orate Cash Management business and growth in structured and flow trade finance solutions.Institutional Client Services revenues are expected to be slightly higher,supported by business growth and higher interest rates.In Business Banking,revenues are expected to be significantly higher compared to t
235、he prior year,principally due to higher interest rates in Germany.Investment Bank revenues are expected to be essentially flat in 2023 compared to the prior year,as the expected partial recovery in Origination and Advisory in the second half of 2023 is likely to be offset by a normalization in FIC S
236、ales&Trading.FIC Sales and Trading revenues are expected to be lower than 2022.Rates will look to build on a strong first quarter and build out targeted business areas where it sees opportunities but expects a normalization in the market in the remainder of the year.Global Emerging Markets will cont
237、inue to develop its onshore footprint and client workflow solutions further,though no repeat of the heightened volatility in the Central&Eastern Europe,Middle East&Africa region and associated revenue seen in 2022 is expected.The Foreign Exchange business was negatively impacted by the extreme inter
238、est rate volatility in the first quarter of 2023,and this will impact the full year performance.Within Credit Trading the flow credit business will look to build on investments into product and coverage teams which have contributed to improved performance in the first quarter.This will support the b
239、roader Credit Trading franchise performance.The Financing business will continue to take a disciplined and selective approach to the deployment of resources and look to benefit going forward from the increase in interest rates seen over the last nine months.Origination&Advisory revenues are expected
240、 to be significantly higher in 2023 compared to 2022,primarily due to an expected recovery in the Debt Origination business.The industry saw an increase in High Yield activity in the first quarter of 2023,which is expected to feed into the rest of the year and potentially open up the Leveraged Debt
241、market,notwithstanding the events in March.Additionally,the business does not expect a recurrence of the loan markdowns that occurred across the industry in 2022.The Investment Grade Debt business will look to maintain its quarter-on-quarter improvement seen in the first quarter and further develop
242、its ESG capabilities for clients.Equity Origination will continue to provide a competitive offering across products and expects to see the market start to open up again throughout the year.Advisory plans to build on the momentum of investment and market share gains in the prior year,however,the redu
243、ced levels of announced volumes seen over the last three quarters materially lowered the industry fee pool in the first quarter of 2023,and this will impact revenues for the remainder of the year.Net revenues in the Private Bank in 2023 are anticipated to remain essentially flat compared to 2022.The
244、 year on year comparison will be impacted by the non-recurrence of a gain on the sale of the Deutsche Bank Financial Advisors business in Italy and by lower revenues from workout activities in Sal.Oppenheim.Revenues excluding these specific items are expected to be slightly higher compared to 2022 d
245、riven by net positive effects from the rising interest rate environment and by continued business growth despite an expected slowdown of the growth of the German mortgage book.In the Private Bank Germany,revenues are expected to be slightly higher compared to 2022.Net interest income is expected to
246、grow driven by higher deposit revenues which will be partly offset by reduced funding benefits including from the ECBs TLTRO program.Fee income is expected to be slightly lower with increases in investment product revenues more than offset by impacts from changes in contractual and regulatory condit
247、ions.Net revenues in the International Private Bank are expected to be slightly lower compared to 2022 driven by the non-recurrence of the aforementioned gain in Italy of approximately 310 million and Sal.Oppenheim workout revenues of approximately 130 million.Excluding these specific items,revenues
248、 are anticipated to be slightly higher year on year reflecting continued business growth supported by prior relationship manager hiring.Positive impacts from rising interest rates are expected to more than compensate for the impact of reduced benefits from the ECBs TLTRO program.AuM volumes are cont
249、inued to be expected higher compared to year end 2022 despite net AuM deposit outflows in the first quarter 2023.As usual,the overall development of AuM volumes will highly depend on market parameters,including equity indices and foreign exchange rates.Growth dynamics in the loan businesses in Priva
250、te Bank Germany are expected to slow down mainly reflecting lower demand in mortgage loans.26 Deutsche Bank Outlook Earnings Report as of March 31,2023 In 2023,Asset Management expects to return to positive net inflows and contribute towards its medium-term refined targets of AuM CAGR of greater tha
251、n 12%for Passive and greater than 10%for Alternatives by 2025,enhanced by expanding the divisions distribution partnerships and further ESG offerings.Assuming market stabilization,Assets under Management at the end of 2023 are expected to be slightly higher compared to the end of 2022,and total reve
252、nues to be essentially flat.Management fees are expected to be slightly lower in 2023 compared to 2022,with higher expected performance and transactions fees and significantly higher other revenues.For 2023,Corporate&Other is expected to generate a pre-tax loss,and as previously reported,will includ
253、e financial impacts of legacy portfolios,previously reported as the Capital Release Unit.Results in Corporate&Other will continue to be impacted by valuation and timing differences on positions that are economically hedged,but do not meet the hedge accounting requirements.Corporate&Other will also c
254、ontinue to retain certain transitional costs relating to the Groups funds transfer pricing framework,and legacy activities,which in total are expected to be around 300 million for the full year.Shareholder expenses are expected to be around 500 million for the full year.The pre-tax loss associated w
255、ith legacy portfolios is expected to be lower than the equivalent pre-tax loss in 2022,primarily from lower noninterest expenses.The bank expects noninterest expenses in 2023 to be essentially flat compared to 2022,as higher restructuring and severance,now expected to amount to 500 million in 2023,a
256、re expected to offset the reduction in bank levies.Adjusted costs excluding bank levies are expected to be essentially flat in 2023.The bank expects to benefit from the banks structural efficiency measures including optimization of its Germany platform,the upgrade of its technology architecture,the
257、front-to-back redesign of processes and measures to increase infrastructure efficiency.These structural benefits are expected to offset inflationary headwinds and selected investments in business growth,technology and in the control environment.For the full year 2023,the Group expects provision for
258、credit losses in a range of 25 to 30 basis points of average loans.The bank expects provision for credit losses in 2023,to be driven by single-name losses rather than a deterioration of macro-economic forward-looking indicators.Deutsche Bank remains committed to its stringent underwriting standards
259、and tight risk management framework.Further details on the calculation of expected credit losses are provided in the section“Risk information”in this report.Common Equity Tier 1 ratio(CET 1 ratio)by year end 2023 is expected to remain essentially flat compared to 2022.The Group expects several regul
260、atory decisions on internal credit and market risk models in 2023.Risk weighted assets are expected to be slightly higher when considering model impacts,respective mitigation initiatives and business growth.Deutsche Bank aims for a Common Equity Tier 1 capital ratio of 200 basis points above the Max
261、imum Distributable Amount(MDA)threshold at the end of 2023.The timing of model decisions might drive CET1 ratio variability within the year.Risks to the Groups outlook include potential impacts on the business model from macroeconomic as well as geopolitical uncertainties,including client refinancin
262、g risks,which could impact certain sectors such as Commercial Real Estate and more highly leveraged corporate clients;as well as higher interest rates,pressures on loan-to-value ratios and tighter lending conditions may impact clients ability to refinance.In addition,continued uncertainties associat
263、ed with the war in Ukraine,the tensions between China and Taiwan and a possible intensification of U.S.versus China strategic competition,as well as global inflationary pressures,slower economic growth in the major operating countries including the risk of a deeper and longer recession,impact from c
264、hanges in foreign exchange rates,and lower client activity could pose risks.Furthermore,uncertainty around central bank policies,the interest rate environment,ongoing regulatory developments,such as the finalization of the Basel III framework as well as other geopolitical event risks may also have a
265、n adverse impact.Adjusted costs,Adjusted costs excluding bank levies as well as Post-tax Return on Average Tangible Equity are non-GAAP financial measures.Please refer to“Non-GAAP financial measures”of this report for the definitions of such measures and reconciliations to the IFRS measures on which
266、 they are based.27 Deutsche Bank Risks and opportunities Earnings Report as of March 31,2023 Risks and opportunities The following section focuses on future trends or events that may result in downside risk or upside potential from what the Group has anticipated in its“Outlook”.The main development
267、in the first three months ended March 31,2023,was the emergence of significant market volatility and selective failures and/or restructurings in the U.S.and European banking sector.The Group assessment of other risks and opportunities that its businesses are exposed to has not materially changed com
268、pared to the information presented in its Annual Report 2022.Key downside risks stem from the ongoing impacts of rising interest rates and elevated inflation,the potential for tightening bank lending standards following the March market stress,a deterioration in the macroeconomic environment and ele
269、vated geopolitical risks.Opportunities may arise if macroeconomic conditions improve beyond currently forecasted levels,which may lead to higher revenues and improving the Groups ability to meet its financial targets.At the same time,higher inflation and interest rate levels and market volatility co
270、uld lead to increased revenues from trading flows and higher net interest income and lending margins.Deutsche Bank could also benefit from helping clients navigate increasingly volatile financial markets.By focusing on and investing in Deutsche Banks areas of core strengths,in alignment with its sus
271、tainability strategy,the implementation of its strategy may create further opportunities if implemented to a greater extent or under more favourable conditions than currently anticipated.Risks Macroeconomic and market conditions In March,mounting investor concerns over banking sector risks resulted
272、in several U.S.regional banks and one major European bank either failing or being restructured.While overall banking sector fundamentals remain sound,recent events have increased the likelihood of a persistent tightening of financial conditions as banks act to preserve liquidity amid higher competit
273、ion for deposits and increased depositor sensitivity around concentration risks.A pronounced tightening in financial conditions would lead to higher client refinancing risks,with Commercial Real Estate and higher leveraged corporate clients among the sectors in focus.Major central banks continued to
274、 tighten monetary policy throughout the recent banking sector turmoil and amid exceptionally high market volatility in some asset classes.Shorter-term sovereign bond yields saw multi-decade record daily moves in mid-March as contagion fears increased.The impact of recent events on investor appetite
275、may at least temporarily impact the Groups ability to distribute and de-risk capital market commitments which could potentially result in losses.Recent events have also increased the risk of idiosyncratic counterparty events both directly and indirectly e.g.,as a result of a shortfall under Lombard
276、or securities financing transactions.In addition,the ECBs TLTRO programme continues to run off with the maturity of the existing TLTRO-III drawings in addition to voluntary prepayments by participating banks.The reduction in this funding source may increase competition for liquidity among Eurozone b
277、anks which could have an impact on Deutsche Banks funding costs.While headline inflation has likely passed its peak in key economies,core inflation is expected to be persistent and the path towards normalization remains uncertain.Elevated policy rates may adversely affect Deutsche Banks planned resu
278、lts of operations,financial targets and costs.This includes increased losses,including higher provisions for credit losses,and rating downgrades across the banks client franchise leading to RWA inflation.More persistent inflation and higher terminal interest rates could also dampen consumer spending
279、 and private client investments and lead to a reduction in new lending for consumer finance and/or private mortgages.Commercial real estate,in particular the U.S.office sector,is likely to experience pressure on asset quality due to the combination of higher interest rates,tighter financial conditio
280、ns and post-pandemic shifts in working patterns.28 Deutsche Bank Risks and opportunities Earnings Report as of March 31,2023 Strategy While the Group continuously plans and adapts to changing situations,it runs the risk that a significant deterioration in the global operating environment,or an adver
281、se change in market confidence in the banking sector and/or client behaviour,could lead the Group to miss its publicly communicated targets,incur unexpected losses including further impairments and provisions,experience lower than planned profitability or an erosion of the Groups capital and funding
282、 base,leading to a material adverse effect on Deutsche Banks results of operations and share price.Deutsche Bank continues to operate in highly competitive markets in all divisions and repercussions from the banking sector stress in March 2023 may have negative impacts on the Group during the remain
283、der of the year.This exacerbates risks that the bank could fall publicly announced targets and objectives e.g.,its CET1 ratio objective of circa 200 basis points above the banks Maximum Distributable Amount(MDA)threshold as highlighted in the section“Outlook”in this report.Liquidity and funding risk
284、s Deutsche Bank retained investment grade ratings with all leading credit rating agencies through the end of March 2023 and does not expect that recent volatility events will have a negative impact on its credit ratings.In response to global inflation and the events during the first quarter of 2023,
285、several Central banks continued to increase interest rates which,in turn,could lead to an increase in Deutsche Banks funding costs and lower valuation of liquid assets which constitute part of its liquidity reserves.At the same time,a downturn in the macro-economic environment could lead to a reduce
286、d savings rate and decline in levels of deposits.This effect could be further exacerbated by competitive pricing pressures from other deposit-taking institutions,as well as any broader counterparty concerns about exposures to certain segments of the banking sector.As of March 31,2023,Deutsche Banks
287、key liquidity metrics remained well above the regulatory minimum requirements,providing a strong basis to manage through ongoing market volatility.Third Party Risk The regulatory framework for managing third party risk continues to evolve and becomes increasingly complex as regulators seek to addres
288、s various objectives.Geopolitical risk developments are also leading to increased scrutiny towards technology providers from third countries and growing localisation requirements.For example,the European Digital Operational Resilience Act(DORA)package which entered into force on January 16,2023,expa
289、nds the EU framework for third party risk management by introducing further monitoring,reporting,testing and oversight requirements(among others)applicable to EU financial institutions in respect of services carried out by their third-party ICT service providers.The DORA legislative package will app
290、ly from January 17,2025,and will complement pre-existing EU“outsourcing”requirements applicable to the financial services sector.A key risk remains that the bank may be ultimately liable in respect of services provided by third parties on behalf of the Group as if the bank had carried out those serv
291、ices itself.In addition,the bank may also face risks of material losses or reputational damage if third parties fail to provide services as agreed with the bank and/or in line with regulatory requirements.29 Deutsche Bank Risks and opportunities Earnings Report as of March 31,2023 Opportunities Macr
292、oeconomic and market conditions An improvement in macroeconomic conditions beyond currently forecasted levels could result in higher than planned revenues.The continued increases in interest rates and elevated market volatility observed in the first quarter also present opportunities including incre
293、ased revenues from higher trading flows amid private,corporate and institutional customers repositioning their portfolios and higher net interest income.Strategy Amid recent volatility events,the banks complete range of services aim to help clients navigate increasingly uncertain financial markets.T
294、he ongoing focus on the efficiency of the banks client coverage and further developments in the client experience and service offering aims to add strength and depth to the banks global client relationships.The impact of recent events on the competitive environment also presents an opportunity for D
295、eutsche Bank to accelerate growth initiatives and target market share gains.This includes attracting key revenue generating talent in particular in advisory businesses,as well as the potential acquisition of portfolios and other assets in line with the Banks stated strategy.Technology,Data and Innov
296、ation Digital innovation offers various opportunities to increase monetization on existing customers and acquire new customer groups by expanding the Groups own portfolio of products and engaging in product partnerships with third parties,thereby potentially benefiting from a shorter time-to-market.
297、Recent developments in artificial intelligence(AI)technologies such as Generative AI and LLM(Large Language Models)are an area of significant potential for Deutsche Banks operational efficiency and revenue growth.The bank is also collaborating with Google on the early adoption of new AI technologies
298、 and on Responsible AI for the banking industry.The Bank is experimenting with such technologies in a prudent and responsible way to ensure it understands and mitigates risks that may arise before such technologies are deployed into production.The Groups global reach allows it to scale products quic
299、kly and efficiently across geographies.At the same time,the banks customers will benefit from products and services being developed and brought to market more quickly in the future.Environmental,social and governance As outlined in Deutsche Banks Sustainability Deep Dive on March 2,2023,the transiti
300、on to a lower carbon economy presents multiple opportunities to support clients on their pathways to net zero through the provision of sustainable finance and transition expertise.Coupled with the active management of the Groups carbon footprint via its net zero target regime,this can lead to both r
301、evenue opportunities as well as improved stakeholder perceptions.30 Deutsche Bank Risk information Earnings Report as of March 31,2023 Risk information Key risk metrics The following section provides qualitative and quantitative disclosures about credit,market,liquidity and other risk metrics and it
302、s developments within the three months ended March 31,2023.Disclosures according to Pillar 3 of the Basel III Capital Framework,which are implemented in the European Union by the Capital Requirements Regulation(CRR)and supported by EBA Implementing Technical Standards or the EBA Guideline,will be pu
303、blished in the Groups separate Pillar 3 report.European Regulation(EU)2019/876 and Directive(EU)2019/878 introduced amendments to the CRR/CRD with various changes to the regulatory framework that became applicable on June 30,2021:A new standardized approach for counterparty credit risk(SA-CCR)was in
304、troduced that replaces the mark-to-market method to determine the exposure value for derivatives that are not in scope of the internal model method.In addition,a new framework to determine the risk weight for banking book investments in collective investment undertakings and default fund contributio
305、ns to central counterparties was introduced.Moreover,a minimum regulatory leverage ratio of 3%is determined as the ratio of Tier 1 capital and the regulatory leverage exposure.In addition,a minimum Net Stable Funding Ratio(NSFR)of 100%was introduced that requires banks to maintain a stable funding p
306、rofile in relation to its on and off-balance sheet exposures.Since June 30,2020,the Group applies the transitional arrangements in relation to IFRS 9 as provided in the current CRR/CRD for all CET1 measures.For additional details on the Groups Regulatory Framework,information on key risk categories
307、and on the management of its material risks,please refer to the Annual Report 2022 under the chapter“Risk report”.31 Deutsche Bank Risk information Earnings Report as of March 31,2023 The following selected key risk ratios and corresponding metrics form part of the banks holistic risk management acr
308、oss individual risk types.The Common Equity Tier 1 ratio(CET1),Economic Capital Adequacy(ECA)Ratio,Leverage ratio,Total Loss Absorbing Capacity(TLAC),Minimum Requirement for Own Funds and Eligible Liabilities(MREL),Liquidity Coverage Ratio(LCR)and Stressed Net Liquidity Position(sNLP)serve as high-l
309、evel metrics and are fully integrated across strategic planning,risk appetite framework,stress testing(except LCR,TLAC and MREL)and recovery and resolution planning practices,which are reviewed and approved by the Management Board at least annually.Going forward,the newly introduced Net Stable Fundi
310、ng Ratio(NSFR)will also form part of the Groups holistic risk management approach.Common Equity Tier 1 ratio 31.3.2023 13.6%31.12.2022 13.4%Economic capital adequacy ratio 31.3.2023 228%31.12.2022 239%Leverage ratio 31.3.2023 4.6%31.12.2022 4.6%Total loss absorbing capacity(TLAC)31.3.2023(Risk Weigh
311、ted Asset based)33.04%31.3.2023(Leverage Exposure based)9.60%31.12.2022(Risk Weighted Asset based)32.20%31.12.2022(Leverage Exposure based)9.34%Liquidity coverage ratio(LCR)31.3.2023 143%31.12.2022 142%Total risk-weighted assets 31.3.2023 359.5 bn 31.12.2022 360.0 bn Total economic capital 31.3.2023
312、 22.1 bn 31.12.2022 20.9 bn Leverage exposure 31.3.2023 1,238 bn 31.12.2022 1,240 bn Minimum requirement for own funds and eligible liabilities(MREL)31.3.2023 35.28%31.12.2022 34.35%Stressed net liquidity position(sNLP)31.3.2023 44.6 bn 31.12.2022 48.1 bn Net Stable Funding Ratio(NSFR)31.3.2023 120%
313、31.12.2022 120%32 Deutsche Bank Risk information Earnings Report as of March 31,2023 Risk-weighted assets Risk-weighted assets by risk type and business division Mar 31,2023 in m.Corporate Bank Investment Bank Private Bank Asset Management Corporate&Other Total Credit risk 67,766 94,456 79,241 9,404
314、 18,881 269,749 Settlement risk 0 2 0 0 209 211 Credit valuation adjustment(CVA)54 5,305 33 5 769 6,165 Market risk 589 19,210 76 28 4,568 24,471 Operational risk 5,301 23,416 7,893 3,489 18,839 58,937 Total 73,711 142,388 87,243 12,925 43,267 359,534 Dec 31,2022 in m.Corporate Bank Investment Bank
315、Private Bank Asset Management Corporate&Other Total Credit risk 68,022 93,184 79,865 9,417 18,726 269,214 Settlement risk 0 63 0 0 61 124 Credit valuation adjustment(CVA)130 5,144 29 4 877 6,184 Market risk 847 17,895 72 28 7,289 26,131 Operational risk 5,304 23,155 7,637 3,414 18,839 58,349 Total 7
316、4,303 139,442 87,602 12,864 45,792 360,003 1 Comparatives aligned to current presentation The RWA of Deutsche Bank were 359.5 billion as of March 31,2023,compared to 360.0 billion at the end of 2022.The decrease of 0.5 billion was driven by market risk RWA,which was partially offset by operational r
317、isk RWA and credit risk RWA.The reduction in market risk RWA by 1.7 billion was primarily driven by decreases in the Value-at-Risk and Stressed Value-at-Risk components due to a lower Capital Multiplier,following a reduction in the qualitative component.Exposure changes also led to a lower Stressed
318、Value-at-Risk but a higher Incremental Risk Charge that offset each other.Higher operational risk RWA of 0.6 billion was mainly driven by qualitative adjustments and external losses,partly offset by a more favorable development of Deutsche Banks internal loss profile feeding into the capital model.T
319、he increase in credit risk RWA by 0.5 billion was primarily driven by business growth within the Investment Bank and the Corporate Bank.The increase in credit risk RWA was partly offset by foreign exchange movements and lower RWA for deferred tax assets.33 Deutsche Bank Risk information Earnings Rep
320、ort as of March 31,2023 CET1 capital reconciliation to shareholders equity in m.Mar 31,2023 Dec 31,2022 Total shareholders equity per accounting balance sheet 63,041 61,959 Deconsolidation/Consolidation of entities 72 29 Of which:Additional paid-in capital 0 0 Retained earnings 72 29 Accumulated oth
321、er comprehensive income(loss),net of tax 0 0 Total shareholders equity per regulatory balance sheet 63,113 61,988 Minority Interests(amount allowed in consolidated CET1)993 1,002 AT1 coupon and shareholder dividend deduction1 (1,299)(1,342)Capital instruments not eligible under CET1 as per CRR 28(1)
322、(23)(14)Common Equity Tier 1(CET1)capital before regulatory adjustments 62,785 61,634 Prudential filters (1,744)(1,427)Of which:Additional value adjustments (1,941)(2,026)Any increase in equity that results from securitized assets (0)(0)Fair value reserves related to gains or losses on cash flow hed
323、ges and gains or losses on liabilities designated at fair value resulting from changes in own credit standing 197 600 Regulatory adjustments relating to unrealized gains and losses pursuant to Art.467 and 468 CRR 0 0 Regulatory adjustments (12,116)(12,110)Of which:Goodwill and other intangible asset
324、s(net of related tax liabilities)(negative amount)(4,929)(5,024)Deferred tax assets that rely on future profitability (3,112)(3,244)Negative amounts resulting from the calculation of expected loss amounts (518)(466)Defined benefit pension fund assets(net of related tax liabilities)(negative amount)(
325、1,323)(1,149)Direct,indirect and synthetic holdings by the institution of the CET1 instruments of financial sector entities where the institution has a significant investment in those entities 0 0 Securitization positions not included in risk-weighted assets 0 0 Other (2,234)(2,225)Common Equity Tie
326、r 1 capital 48,926 48,097 1 Interim profits are recognized subject to approval as per ECB Decision(EU)2015/656 in accordance with the Article 26(2)of Regulation(EU)No 575/2013(ECB/2015/4)2 Includes capital deductions of 1.2 billion(Dec 2022:1.2 billion)based on ECB guidance on irrevocable payment co
327、mmitments related to the Single Resolution Fund and the Deposit Guarantee Scheme,1.0 billion(Dec 2022:1.0 billion)based on ECBs supervisory recommendation for a prudential provisioning of non-performing exposures,2.9 million(Dec 2022:7 million)resulting from minimum value commitments as per Article
328、36(1)(n)of the CRR and CET1 decrease of 1.7 million(Dec 2022:15 million)from IFRS 9 transitional provision as per Article 473a of the CRR As of March 31,2023,Deutsche Banks CET1 capital ratio increased to 13.6%compared to 13.4%as of December 31,2022.The increase of 25 basis points is mainly driven b
329、y higher CET1 capital and partially by decreased RWA due to the aforementioned developments.CET1 Capital increased by 0.8 billion compared to year end 2022 which was mainly the result of the net profit of 1.3 billion for the first three months ended March 31,2023,partially offset by regulatory deduc
330、tions for future common share dividend and AT1 coupon payments of 0.4 billion which is in line with the ECB Decision(EU)(2015/656)on the recognition of interim or year-end profits in CET1 capital in accordance with the Article 26(2)of Regulation(EU)No 575/2013(ECB/2015/4).In addition,CET1 capital in
331、creased as a result of positive impacts from reduced dividend deduction of 0.4 billion for 2022 due to the proposed dividend payment for 2022 and 0.5 billion unrealized gains and losses from financial instruments at fair value through other comprehensive income(mainly stemming from 0.2 billion reduc
332、ed unrealized net losses on securities available for sale and 0.2 billion reduced unrealized net losses on cash flow derivatives hedging).These positive impacts were partly offset by deductions of 0.4 billion from Equity compensation,0.3 billion cash flow hedge reserve related to non-fair value unde
333、rlying and higher expected loss shortfall deduction of 0.1 billion.Additionally,CET1 capital decreased due to Currency Translation Adjustments of 0.3 billion net of foreign exchange counter-effects of capital deduction items of 0.1 billion.34 Deutsche Bank Risk information Earnings Report as of March 31,2023 Economic capital adequacy ratio and economic capital The economic capital adequacy ratio w