Q4 2020 Deutsche Bank AG Earnings Press Conference

February 4, 2021

The fundamental transformation which we announced in July 2019. Now, this marked the start of the second phase of our transformation and that promise was quite clear. By focusing on new strategy on our strength and by further reducing costs and risks, we would pave the way for sustainable profit. And that's exactly what we did. From the outset, we said that the most intensive phase of this transformation will be the first six quarters, that is from the middle of 2019 to the end of 2020. Now, after the six quarters, 85% of transformation-related effects of burdens are now behind us, 85% of the effects we anticipate is for the period up to 2022.

Christian Sewing: The fundamental transformation which we announced in July 2019. Now, this marked the start of the second phase of our transformation. The promise was quite clear. By focusing our new strategy on our strengths and by further reducing costs and risk, we will pave the way for sustainable profit. That's exactly what we did. From the outset, we said that the most intensive phase of this transformation would be the first six quarters. That is from the middle of 2019 to the end of 2020. Now, after these six quarters, 85% of transformation-related effects or burdens are now behind us. 85% of the effects we anticipated for the period up to 2022. Now, this is why with our Investor Deep Dive in December, we launched a third phase of our transformation, which is the phase of sustainable profitability.

Now this marked the start of the second phase of transformation and that promise was quite clear.

By focusing on.

Our new strategy on our strength and by further reducing costs and risks.

He would pave the way for sustainable profit.

And that's exactly what we did.

From the outset, we said that the most intensive phase of this transformation will be the first six quarters that is from the middle of 2019 to the end of 'twenty 'twenty.

Now after the six quarters, 85% of transformation related effects of burdens are now behind US 85% of the effects, we anticipated for the period up to 2022.

Okay.

Now, this is why with our invest in Deep Dive in December we launched a third phase of fund transformation. Which is the phase of sustainable profitability. Our goal is to grow and at the same time to remain absolutely disciplined with regard to costs and capital. Our strategy and our rigorous implementation led to the desired results faster than we expected ourselves. And this was because our clients and all businesses really know what we stand for and because we were there for our clients, especially and this turbulent environment. Whether it was for companies that needed short term liquidity and the crisis often private clients who wanted to secure their assets.

Which is the phase of sustainable profitability.

Our goal is to grow and at the same time to remain absolutely disciplined with regard to costs and capital.

Christian Sewing: Our goal is to grow and at the same time, to remain absolutely disciplined with regard to costs and capital. Our strategy and the rigorous implementation led to the desired results faster than we expected ourselves. Now, this was because our clients in all businesses really know what we stand for, and because we were there for our clients, especially in this turbulent environment, whether it was for companies that needed short-term liquidity in the crisis or for private clients who wanted to secure their assets. Now, as a result, we were able to increase our revenues by 4%, and in the core bank, excluding one-off effects, it was even 6%. In absolute figures, ladies and gentlemen, this represents an increase of EUR 1.4 billion. Now, currently, there's a lot of talk about the success of our Investment Bank.

Our strategy and our rigorous implementation led to the desired results faster than we expected ourselves.

And this was.

Our clients and all businesses really know what we stand for and because we were there for our clients, especially and this turbulent environment, whether it was for companies and it.

Needed short term liquidity and the crisis often private clients.

I wanted to secured assets.

Now as a result, we were able to increase our revenues by 4% and the core bank, including one-off effects. It was even 6% and absolute figures, ladies and gentlemen. This represents an increase of 1.4 billion euros. Now, currently, there's a lot of talk about and success of our investment bank. And that should not in any way diminish or beliterate the performance of our private bank and corporate bank. In the difficult environment in spite of historically low-interest rates and the economic consequences of the pandemic. Our teams, both areas and both businesses kept revenues stable and achieved our internal target. Now, this is a major achievement.

Now currently there's a lot of talk about and success of our investment bank.

And that should not in any way diminish over literally the performance of our private bank and corporate bank.

Christian Sewing: That should not in any way diminish or belittle the performance of our Private Bank and our Corporate Bank. In a difficult environment, in spite of historically low interest rates and the economic consequences of the pandemic, our teams in both areas, in both businesses, kept revenues stable and achieved their internal target. Now, this is a major achievement. I would really like to thank the Private Bank and the Corporate Bank for this and congratulate them on their achievements. James von Moltke will later on guide you through the development of each business in greater detail later on. Now, of course, our cost discipline remains an important element of our success. For three years now, we have reduced costs quarter by quarter. The target for 2020, namely to reduce adjusted cost to EUR 19.5 billion, was achieved.

And the difficult environment in spite of historically low interest rates and the economic consequences of the pandemic.

Our teams.

And both areas and both businesses kept revenues stable and achieved our internal target.

Now this is a major achievement.

Okay.

And I would really like to thank the private bank and the corporate bank for this and congratulate them on their achievements. James and [Mark] will, later on, guide you through the development of each business and greater detail later on. And of course, our cost discipline remains an important element of our success for three years now we have reduced cost quarter by quarter. And the target for 2020, namely to reduce adjusted costs to 19.5 billion euros was achieved in other words last year alone, we've reduced costs by 2 billion euros. On this basis, annual adjusted costs were almost 4.5 billion euros lower than it was in 2017.

James and marker will later on guide you through the development of each business and greater detail later on now.

And of course.

Our cost discipline remains an important element of our success for three years now.

We have reduced cost quarter by quarter.

And.

The target for 'twenty, and 'twenty, namely to reduce adjusted costs to 19.5 billion euros was achieved in other words.

Christian Sewing: In other words, last year alone, we reduced costs by EUR 2 billion. On this basis, annual adjusted costs were almost EUR 4.5 billion lower than they were in 2017. This progress, this continuity gives us great confidence that we will also achieve the ambitious cost reductions and efficiency gains that we have set ourselves as targets for this year and next year. Now, our progress on revenues and costs have propelled us back into the black into profitability, not only in terms of pre-tax profit, but also after tax. EUR 624 million remained. I think no one would have thought us capable of doing this just a few months ago.

Last year.

Last year alone, we've reduced costs by 2 billion euros.

And what is spaces.

Annual adjusted costs were almost full point 5 billion euros lowered and they were in 2017.

This progress, this continuity gives us great confidence that we will also achieve the ambitious cost reductions and efficiency gains that we have set ourselves as targets for this year and next year. Now, our progress on revenues and costs have prepared us back into the black and to profitability. Now certainly in terms of pretax profit, but also after-tax 624 million euros remained. And I think no one would've thought is capable of doing this just a few months ago. It's particularly important to businesses, which you want to continue and call our core bank have generated and adjusted pre-tax income of $4.2 billion euros that is an increase of more than 52% compared with the previous year.

Debt, we have set ourselves as targets for this year and next year.

Now our progress on revenues and costs have prepared us back into the.

Black and to profitability and also.

Thirdly in terms of pretax profit, but also after tax 624 million euros.

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And.

I think no one would've thought is capable of doing this just a few months ago.

It's particularly important to businesses, which you want to continue and call a core bank have generated and adjusted pre tax income of $4 2 billion euros that is an increase of more than 52% compared with the previous year.

Christian Sewing: What's particularly important, the businesses which we want to continue and call our core bank have generated an adjusted pre-tax income of EUR 4.2 billion. That is an increase of more than 52% compared with the previous year. Now, this despite significantly higher loan loss provisions in the wake of Corona crisis. Now, this clearly demonstrates the operational strength of our bank. However, also our Capital Release Unit has been successful. This is especially thanks to significantly lower costs. The CRU posted a smaller loss than in the previous year. At the same time, we've been working to further develop our technology and strengthen our controls over the past year. Now our often criticized IT impressively passed the acid test of the coronavirus crisis. It has proven to be stable, performant, and very flexible.

Now, and this despite significantly higher loan loss provisions in the wake Corona crisis. This clearly demonstrates the operational strength of our bank. However, they also on capital release unit has been successful. This is especially thanks to significantly lower costs [the CRU] posted a smaller loss than in the previous year. At the same time, we've been working to further develop our technology and strengthen and not controlled over the past year. [inaudible] Now often criticized Iot impressively passed the acid test of the coronavirus crisis and it has proven to be stable, performant and very flexible and very short time, we're able to get almost the entire company to work from home.

And this clearly demonstrates the operational strength of our bank. However, they also on capital release unit.

Has been successful.

This is especially things to significantly lower costs. The Sia you posted a smaller loss and in the previous year.

At the same time.

We've been working to further develop our technology and strength and not controlled over the past year on and off grid of Vietnam now often criticized Iot impressively passed the acid test of the coronavirus crisis and it has proven to be stable fall and and very flexible and very short time.

Christian Sewing: In a very short time, we were able to get almost the entire company to work from home. Now, this is partly because in cooperation with our regulators, we enable processes such as technical signatures and even move parts of our trading floor to the home. We have also advanced our major technology projects. Now, as part of the IT integration of our retail bank in Germany, we closed the sale of the Postbank Systems subsidiary. Also, a partnership with Google Cloud is a significant step forward. From now on, we can use a modern, efficient infrastructure of one of the strongest technology partners worldwide and concentrate our own efforts on innovations for our clients. Now it's time to steadily expand our digital office. For example, our Autobahn platform, which already has more than 90,000 active users among our investment bank and corporate bank clients.

I'm, we're able to get almost entire company to work from home.

Now, this is partly because incorporation with our regulators, we enable processes such as technical signatures and even move parts of our trading floor to the home. We have also advanced on major technology projects. Now, as part of the IT integration of our retail bank in Germany, we closed the sale of the Postbank systems subsidiary. Also, our partnership with Google Cloud is a significant step forward. From now on we can use and modern efficient infrastructure of one of the strongest technology partners worldwide and concentrate our efforts on innovation for our clients. Now, it's time to steadily expand and digital office. For example, [inaudible] platform, which already has more than 90,000 active users among our investment bank and corporate bank lines. It is equally important that we continue to invest in our controls. Within two years, we spent some 2 billion euros on this. Today, our compliance function monitors 3 million transactions and 1 million communications every day.

We have also advanced on major technology projects.

Now as part of the I T integration of our retail bank in Germany, we closed the sale of the Postbank systems subsidiary.

Also our partnership with Google Cloud Cloud is a significant step forward from now on we can use and modern efficient infrastructure of one of the.

Strongest technology partners worldwide and concentrate on own efforts on innovation for clients.

Now, it's time to steadily expand and digital office for example.

Older Bond platform, which already has more than 90000 active users among our investment bank and corporate bank lines.

It is equally important debt, we continue to invest and our controls.

Christian Sewing: It is equally important that we continue to invest in our controls. Within 2 years, we spent some EUR 2 billion on this. Today, our compliance function monitors 3 million transactions and 1 million communications every day. In market risk management, we analyze up to 30 billion valuation calculations per day. Now, it's also clear we need to strengthen controls even further. In an increasingly digitized and complex world, the demands on banks are increasing day by day, and we have to prepare ourselves for this. Now, this makes it all the more important that our capital strength is no longer put into question or doubt. Despite the cost of the pandemic and our transformation, we maintained our CET1 ratio at 13.6%.

Within two years, we spent some 2 billion euros and this.

Today, our compliance function monitors and 3 million transactions and 1 million Communications every day.

And in market risk management, we analyze up to 30 billion valuation calculations per day. And now it's also clear, we need to strengthen controls even further. And then increasingly digitized and complex world the demands on banks are increasing day by day, and we have to prepare ourselves. Now, this makes it all the more important that our capital strength is noted on the put into question and no doubt. Despite the cost of the pandemic and our transformation, we maintained our CET one ratio at 13.6%. This was partly due to regulatory changes during the coronavirus crisis, and the fact that certain changes to calculation models will become effective later than we expected. In addition, our capital release unit was also able to reduce its risks faster than planned. And at a lower cost than expected. This was also a major factor and at the same time this year, we have benefited in particular from the fact that we've been managing our credit risks conservatively for years. Now, nonetheless, we too must expect additional credit losses and the current environment and this is why [inaudible] provisions in 2020 have risen to 8.1 billion euros.

And stubhub.

And now it's also clear we need to strengthen controls even further and then.

And increasingly digitized and complex world the demands on banks are increasing day.

Day by day, and we have to prepare ourselves.

Yeah.

Now this makes it all the more important that our capital strength is noted on the put into question and no doubt despite the cost of the pandemic and our transformation.

We maintained our CET one ratio at 13.6%.

This was partly due to regulatory changes during the coronavirus crisis, and the fact that certain changes to calculation models will become effective later than we expected.

Christian Sewing: This was partly due to regulatory changes during the coronavirus crisis and the fact that certain changes to calculation models will become effective later than we expected. In addition, our Capital Release Unit was also able to reduce its risks faster than planned and at a lower cost than expected. This was also a major factor. At the same time this year, we have benefited in particular from the fact that we've been managing our credit risks conservatively for years. Now, nonetheless, we too must expect additional credit losses in the current environment, and this is why our loan loss provisions in 2020 have risen to EUR 8.1 billion. Now, even in a recession of historic proportions, we have our credit risks under control, as demonstrated by two facts.

Bob Al.

In addition, our capital release unit was also able to reduce its risks faster than planned.

And at a lower cost than expected. This was also a major factor and at the same time. This year. We have benefited in particular from the fact that we've been managing our credit risks conservatively for years now Nonetheless, we too must expect additional credit losses and the current environment and this is why alondra.

Provisions in 'twenty, and 'twenty have risen to 8.1 billion euros.

Now, but even in the recession of these toric proportions, we have our credit risks under control as demonstrated by two facts. So the full year loan loss provisions remain within the guidance, we gave them as early as in April and it was also significantly lower than for many of our peers and there are important reasons for that. One important reason for example is that we have not softened our lending standards, not even in years of strong economic growth. In 2021 we expect slightly lower loan loss provisions 10 last year and for 2020 we expect the normalization. Later on, [inaudible] will provide details on our loan portfolio. Just let me say, I'm particularly delighted that a few days ago [the renowned] for the risk net awarded Deutsche Bank, the accolade of Risk Manager of the Year. Now, this is a well-deserved acknowledgement for Stuart Lewis and his team.

So the.

Christian Sewing: The full year loan loss provisions remained within the guidance we gave as early as in April, and it was also significantly lower than for many of our peers, and there are important reasons for that. Now, one important reason, for example, is that we have not softened our lending standards, not even in years of strong economic growth. In 2021, we expect slightly lower loan loss provisions than last year, and for 2022, we expect further normalization. Later on, James von Moltke will provide details on our loan portfolio. Just let me say, I'm particularly delighted that a few days ago, the renowned trade portal Risk.net awarded Deutsche Bank the accolade of Risk Manager of the Year. Now, this is a well-deserved acknowledgement for Stuart Lewis and his team. Now let's stay with 2020 for a moment.

Full year loan loss provisions remain who's on the guidance, we gave them as early as in April and it was also significantly lower than for many of our peers and then on important reasons for that no. One important reasons. For example is that we have not softened our lending standards, not even and years of strong economic growth and.

In 'twenty and 'twenty, one we expect slightly lower loan loss provisions 10 last year and for 'twenty and 'twenty two we expect to the normalization and later on day symbolic who will provide details on our loan portfolio.

Just let me say.

I'm, particularly delighted.

That a few days ago to Reno and trade quarter risk net awarded Deutsche Bank, the acolyte of risk manager of the year now this is a well deserved.

Knowledge and for Stuart Lewis and his team.

Yeah.

Now, let's stay with 2020 for a moment. What we've seen over the past 12 months is anything but a normal textbook recession. The sudden stop of large parts of the economy, and the historic slump in GDP meant that our client suddenly needed as urgently. And we wanted to live up to that. And that's what we managed to do, ladies and gentlemen. We stood by our clients when economic certainty suddenly seemed to be no longer valid. And I asked them. And with providing funding or advice. Overall, we helped our clients raise 1.7 trillion euros in the capsule market last year. That's an all-time high for our bank and an increase of 43% over the previous year.

Well, we've seen over the past 12 months is anything but normal textbook recession.

Christian Sewing: What we've seen over the past 12 months is anything but a normal textbook recession. The sudden stop of large parts of the economy and the historic slump in GDP meant that our clients suddenly needed us urgently. We wanted to live up to this. That's what we managed to do, ladies and gentlemen. We stood by our clients when economic certainty suddenly seemed to be no longer valid. We were there for them, be it with providing funding or advice. Overall, we helped our clients raise EUR 1.7 trillion in the capital market last year. Now, that's an all-time high for our bank and an increase of 43% over the previous year. We've also helped to ensure that the vital support of the German government and the federal states actually reached the economy in this exceptional situation.

The sudden stop of large parts of the economy, and the historic slump and GDP and that our client suddenly needed as urgently.

And we wanted to live up to that.

And that's what we managed to do ladies and gentlemen, we stood by our clients when economics, it and to suddenly seemed to be no longer valid.

And I asked them.

And with providing funding for advice.

Overall, we helped our clients raise 1.7 trillion euros and the capsule market last year.

That's an all time high for our bank and an increase of 43% over the previous year.

We've also helped to ensure that the vital support of the German government and the federal States actually reached the economy in this exceptional situation. And there was a bank that participated actively in the care of double your funding Brooklyn's managing applications for more than 12 billion euros of loans for our clients. And we have advised companies and private clients intensively, including on matters beyond banking for example. For example, we handled more than 250,000 inquiries to our corporate banks Coronavirus helped us often provide advice with regard, on request for stated are difficult situations for private clients were not only remained available on branches even in times of the most stringent lockdown but also of course via video and telephone. Brokers and success can never be taken for granted but in 2020 itt was even less so. The combination of our transformation and the coronavirus crisis meant a huge burden and consider the strain and especially for our colleagues virtually overnight basically many literally had to work at the kitchen table. Often looking after their children at the same time or worrying about their parents.

Reached the economy and this exceptional situation.

And there was a bank participated actively in the care of double your funding Brooklyn's managing applications for more than 12 billion euros of loans for our clients.

Christian Sewing: No other bank participated as actively in the KfW funding programs, managing applications for more than EUR 12 billion of loans for our clients. We have advised companies and private clients intensively, including on matters beyond banking, for example. For example, we handled more than 250,000 inquiries to our corporate bank's coronavirus help desk, often providing advice with regard to requests for state aid or difficult situations. For our private clients, we not only remained available in our branches, even in times of the most stringent lockdown, but also, of course, via video and telephone. Progress and success can never be taken for granted, but in 2020 it was even less so. Combination of our transformation and the coronavirus crisis meant a huge burden and considerable strain, especially for our colleagues.

Yeah.

And we have advised companies and private clients intensively, including on matters beyond banking for example.

For example, we handled more than 250000 inquiries to our corporate bank Corona virus helped us often providing advice with regard.

On request for stated are difficult situations for profit clients were not only remained available on branches even in times of the most stringent lockdown, but also of course for video and telephone.

Brokers and success can never be taken for granted but in 'twenty and 'twenty. It was even less so.

Combination of our transformation and the coronavirus.

Virus crises meant a huge burden and consider the strain and especially for our colleagues virtually overnight basically many literally had to work at the kitchen table.

Christian Sewing: Virtually overnight, basically, many literally had to work at the kitchen table, often looking after their children at the same time, or worrying about their parents. Now, for more than 60,000 of our employees, this became the new normal, and a lot of them still work from home today. Now, on behalf of the Management Board, I would like to thank our colleagues wholeheartedly for their incredible dedication. Your achievements have made us proud. Now, in light of these burdens, it is particularly gratifying that our clients appreciate this commitment and our clear strategy. Trust in our brand has not only returned, but in some areas reached record levels, both among our corporate clients and our private clients in Germany. Now, of course, this also has an internal impact. 79% of our employees support our strategy, 10 percentage points more than a year earlier.

Often looking after their children at the same time on worrying about their parents.

Now, for more than 60,000 of our employees, this became the new normal and a lot of them still work from home today. Now, on behalf of the Management Board, I would like to thank our colleagues wholeheartedly for their incredible dedication. Your achievements have made us proud. Now, in light of these burdens, it is particularly gratifying that our clients appreciate his commitment and our clear strategy. Trust in our brand is not only returned but in some areas reached record levels, those among our corporate clients and our private clients in Germany.

For more than 60000 of our employees. This became the new normal and a lot of them still works from home today.

Now.

On behalf of the management Board I would like to thank our colleagues wholeheartedly for their incredible dedication.

Your achievements.

F made us proud.

Okay.

Now in light of these burdens it is particularly gratifying that our clients appreciate his commitment and a clear strategy.

Trust and our brand is.

There's not only returned but in some areas reached record levels those among our corporate clients and our private clients and Germany.

Now, of course, this also has an internal impact 79% of our employees support our strategy, 10 percentage points more than a year earlier. Nearly 90% are even convinced that we are handling the crisis well. And they're more loyal to our bank and they have been at any point since 2012. Ladies and gentlemen, of course, one thing reinforces the other, our colleagues see and feel well they have achieved for their clients and feel appreciated by them and this, in turn, gives as all additional information to the very best. We also see a return of confidence in the financial markets. Our stock is still a long way from where we would like it to be. Last year, however, our share price outperformed the European industry average by over 50% and not only debt. We also performed better than all the major US banks.

10 percentage points more than a year earlier.

Nearly 90% even convinced that we are handling the crisis as well.

Christian Sewing: Nearly 90% are even convinced that we are handling the crisis well, and they are more loyal to our bank than they have been at any point since 2012. Ladies and gentlemen, here, of course, one thing reinforces the other. Our colleagues see and feel what they have achieved for their clients and feel appreciated by them, and this in turn gives us all additional information to do our very best. We also see a return of confidence in the financial market. Our stock is still a long way from where we would like it to be. Last year, however, our share price outperformed the European industry average by over 50%, and not only that, we also performed better than all the major US banks. Now, we haven't seen this for quite a while.

And they're more loyal to our bank and they have been at any point since 2012 ladies.

Ladies and gentlemen.

Hey of course, one thing reinforces the other colleagues see and feel well they have achieved for their clients and feel appreciated by them and disinter and gifts as all additional information to the very best.

We also see a return of confidence in the financial markets. Our stock is still a long way from where we would like it to be.

Last year, however, our share price.

Yeah.

Outperformed the European industry average by over 50% and not only debt. We also performed better and all the major U S banks.

Now we haven't seen this for quite a while. And two major credit rating agencies have more positive outlook for our credit ratings in just a few months ago. Moody's and Fitch explicitly referred to the progress we've made and our strategy. Meanwhile, our funding costs, which are also reflected and the price of our credit default swaps have declined markedly. Which in turn, of course, had a positive impact on our business. Now the prerequisite for these achievements was and is that we implement our strategy and a disciplined and consistent manner. James [von Moltke] will therefore take you through last year's results and detail before I will take over again for the outlook. James. Over to you.

And.

And two major credit rating agencies have more positive outlook for our credit ratings and just a few months ago.

Christian Sewing: Two major credit rating agencies have a more positive outlook for our credit ratings than just a few months ago. Moody's and Fitch explicitly refer to the progress we've made in our strategy. Meanwhile, our funding costs, which are also reflected in the price of our credit default swaps, have declined markedly, which in turn, of course, had a positive impact on our business. Now, the prerequisite for these achievements was, and is, that we implement our strategy in a disciplined and consistent manner. James von Moltke will therefore take you through last year's results in detail before I will take over again for the outlook. James, over to you.

Moody's and Fitch.

Politically referred to the progress we've made and our strategy.

Meanwhile, our funding costs, which are also reflected and the price of our credit default swaps.

Have declined markedly.

Rich and 10 of course had a positive impact on our business.

Now the prerequisite for these achievements was and is that we implement our strategy and a disciplined and consistent manner.

Smoker will therefore take you through last year's results and detail before.

I will take over again for the outlook.

James.

Over to you.

Yeah.

[music].

Good margin on off on margin.

Frank Hartmann: Good morning, and also welcome from my side. As Christian said, we reported EUR 1 billion in profit before tax in 2020, after loss before tax of EUR 2.6 billion in 2019. Let me now explain in more detail what drove this development. As we expected, the impact of transformation-related effect is coming down as we've made significant progress with our restructuring. After 6 quarters of disciplined execution, we can see the result. 85% of the total transformation-related effects is now behind us. Goodwill impairments, which amounted to approximately EUR 1 billion in 2019, did not recur anymore in 2020. Transformation charges were down by around EUR 700 million year on year, and restructuring and severance costs were down by 15% year on year, or around EUR 100 million.

James von Moltke: Good morning, and also welcome from my side. As Christian said, we reported EUR 1 billion in profit before tax in 2020, after loss before tax of EUR 2.6 billion in 2019. Let me now explain in more detail what drove this development. As we expected, the impact of transformation-related effect is coming down as we've made significant progress with our restructuring. After 6 quarters of disciplined execution, we can see the result. 85% of the total transformation-related effects is now behind us. Goodwill impairments, which amounted to approximately EUR 1 billion in 2019, did not recur anymore in 2020. Transformation charges were down by around EUR 700 million year on year, and restructuring and severance costs were down by 15% year on year, or around EUR 100 million.

Good morning, and also welcome from my side. As Christian said, we reported 1 billion euros and profit before tax in 2020. After a loss before tax of 2.6 billion euros in 2019. Let me now explain in more detail what drove this development. As we expected, the impact of the transformation-related effect is coming down. And as we've made significant progress with our restructuring. After six quarters of disciplined execution, we can see the result. 85% of the total transformation-related effect is now behind us. Goodwill impairments, which amounted to approximately 1 billion euros in 2019 did not recur anymore enter in 2020.

After a loss before tax of $2 6 billion euros and 2019.

Let me and I'll explain in more detail what drove this and development.

As we expected.

The impact of transformation related effect is coming down.

And as we've made significant progress with our restructuring.

After six quarters of disciplined execution, we can see the result.

85% off day total transformation related effect is now behind us.

Goodwill impairments, which amounted to approximately 1 billion euros and 2019.

And did not recur anymore enter into 'twenty.

Transformation charges were down by around 700 million euros year on year. And restructuring and severance costs were down by 15% year on year or around 100 million euros. This reduction and transformation related effects, however, explains only half of why this year's result is so much better. The other half comes from the strength inour core businesses. Where we see our future. As well as the successful progress made in the capital release unit as we call it. In environment dominated by the pandemic. The operating performance of our businesses was in line with what we had expected or even stronger. As a result, the adjusted pretax profit increased by more than 1.8 billion euros to 2.2 billion euros after 361 million euros in the previous year.

And restructuring and severance costs were down by 15% year on year or around 100 million euros.

This reduction and transformation roof related effects. However explains only half of why this year's result is so much better.

Frank Hartmann: This reduction in transformation related effects, however, explains only half of why this year's result is so much better. The other half comes from the strength in our core businesses, where we see our future, as well as the successful progress made in the Capital Release Unit, as we call it. In an environment dominated by the pandemic, the operating performance of our businesses was in line with what we had expected or even stronger. As a result, the adjusted pretax profit increased by more than EUR 1.8 billion to EUR 2.2 billion, after EUR 361 million in the previous year. Our cost discipline remains an important driver of our success, and here we also delivered on target. Adjusted costs were EUR 19.5 billion in 2020, down 9% versus the previous year.

James von Moltke: This reduction in transformation related effects, however, explains only half of why this year's result is so much better. The other half comes from the strength in our core businesses, where we see our future, as well as the successful progress made in the Capital Release Unit, as we call it. In an environment dominated by the pandemic, the operating performance of our businesses was in line with what we had expected or even stronger. As a result, the adjusted pretax profit increased by more than EUR 1.8 billion to EUR 2.2 billion, after EUR 361 million in the previous year. Our cost discipline remains an important driver of our success, and here we also delivered on target. Adjusted costs were EUR 19.5 billion in 2020, down 9% versus the previous year.

The other half comes from the strength and our core businesses.

Where we see our future.

As well as the success successful progress made and the capital release unit as we call it.

Yeah.

And environment dominated by the pandemic.

The operating performance of our businesses was in line with what we had expected or even stronger. As a result, the adjusted pretax profit increased by more than 1.8 billion euros to 2.2 billion euros after 361 million euros in the previous year.

Our cost discipline remains an important driver of our success and here we also delivered on target. Adjusted costs were 19.5 billion euros in 2020. Down 9% versus the previous year. Excluding transformation charges and bank levies, we have reduced our adjusted costs for 12 quarters in a row. Compared to the respective previous year period. So over the course of three years since the beginning of 2018, we've taken more than 1 billion euros out of our quarterly expenses. Compensation and benefits expenses also came down driven by the progress on workforce reductions. We also reduced IT expenses and professional service fees. In 2020, we have grown our revenues and simultaneously continued cost reduction. Which more than offset a rise in provisions for credit losses. In a year that was marked by so many uncertainties, we can be very proud of our risk management achievements. Provisions for credit losses were 1.8 billion euros in 2020. Up from 723 million euros into the period the prior year.

Adjusted costs were $19 5 billion euros in 'twenty and 'twenty.

Down 9% versus the previous year.

Yeah.

Excluding transformation charges and bank levies and we have reduced our adjusted costs for 12 quarters in a row.

Frank Hartmann: Excluding transformation charges and bank levies, we have reduced our adjusted costs for 12 quarters in a row compared to the respective previous year period. Over the course of 3 years since the beginning of 2018, we've taken more than EUR 1 billion out of our quarterly expenses. Compensation and benefit expenses also came down, driven by the progress on workforce reductions. We also reduced IT expenses and professional service fees. In 2020, we have grown our revenues and simultaneously continued cost reduction, which more than offset a rise in provisions for credit losses. In a year that was marked by so many uncertainties, we can be very proud of our risk management's achievements. Provisions for credit losses were EUR 1.8 billion in 2020, up from EUR 723 million in the prior year.

James von Moltke: Excluding transformation charges and bank levies, we have reduced our adjusted costs for 12 quarters in a row compared to the respective previous year period. Over the course of 3 years since the beginning of 2018, we've taken more than EUR 1 billion out of our quarterly expenses. Compensation and benefit expenses also came down, driven by the progress on workforce reductions. We also reduced IT expenses and professional service fees. In 2020, we have grown our revenues and simultaneously continued cost reduction, which more than offset a rise in provisions for credit losses. In a year that was marked by so many uncertainties, we can be very proud of our risk management's achievements. Provisions for credit losses were EUR 1.8 billion in 2020, up from EUR 723 million in the prior year.

Compared to the respective previous year period.

So over the course of three years since the beginning of 'twenty and 18, we've taken more than 1 billion euros out of our quarterly expenses.

Compensation and benefits expenses also came down driven by the progress on work force reductions.

We also reduced expenses and professional service fees.

And 2020, we have grown our revenues and simultaneously continued cost reduction.

Which more than offset a rise and provisions for credit losses.

And a year and it was marked by so many uncertainties, we can be very proud of our risk management achievements.

Provisions for credit losses.

We're 1.8 billion euros in 'twenty and 'twenty.

Up from 723 million euros into period prior year.

This represents 41 basis points of the average loan volume, which is in the middle of the range we guided to already in April of between 35 and 45 basis points. With allowances of 4.8 billion euros in our balance sheet, Deutsche Bank is well protected against credit risk. And for the further development of the pandemic and its economic impact. The relatively good development of our risk costs reflects a number of factors. We have a high-quality loan book. About half of it is in Germany, and the bulk of this, in turn, is in low-risk German mortgages. Our exposure to industry sectors, which is impacted more by the pandemic is relatively small. And is largely well-diversified and collateralized. And our exposure to consumer loans and the credit card business were just in areas through a higher default are more likely to happen. And exactly there our exposure is significantly lower than most of our international peers.

Frank Hartmann: This represents 41 basis points of the average loan volume, which is in the middle of the range we guided to already in April of between 35 and 45 basis points. With allowances of EUR 4.8 billion in our balance sheet, Deutsche Bank is well protected against credit risk and for the further development of the pandemic and its economic impact. The relatively good development of our risk costs reflects a number of factors. We have a high quality loan book. About half of it is in Germany, and the bulk of this, in turn, is in low risk German mortgages. Our exposure to industry sectors, which is impacted more by the pandemic, is relatively small and is largely well-diversified and collateralized.

James von Moltke: This represents 41 basis points of the average loan volume, which is in the middle of the range we guided to already in April of between 35 and 45 basis points. With allowances of EUR 4.8 billion in our balance sheet, Deutsche Bank is well protected against credit risk and for the further development of the pandemic and its economic impact. The relatively good development of our risk costs reflects a number of factors. We have a high quality loan book. About half of it is in Germany, and the bulk of this, in turn, is in low risk German mortgages. Our exposure to industry sectors, which is impacted more by the pandemic, is relatively small and is largely well-diversified and collateralized.

Okay.

And with allowances of $4 8 billion euros, and our balance sheet Deutsche Bank as well protected against credit risk.

And for the further development of the pandemic and its economic impact.

The relatively good development of our risk costs reflects a number of factors.

We have on high quality loan book.

About half of it is in Germany, and the bulk of this in turn is in low risk German mortgages.

Our exposure to industry sectors, which is impacted more by the pandemic is relatively small.

And is largely well diversified and collateralized.

And our exposure to consumer loans and the credit card business.

Frank Hartmann: Our exposure to consumer loans and the credit card business, which is in areas where higher defaults are more likely to happen, and exactly there, our exposure is significantly lower than most of our international peers. Another strength in these difficult times is our capital position. Our common equity tier one ratio finished the year at 13.6%, which is essentially unchanged versus the end of 2019. This ratio is more than 300 basis points higher than our regulatory requirement, which equates to around EUR 10 billion. In Q4, this ratio rose from 13.3% to 13.6%, which was driven primarily by 3 factors. Growth of our client business, which led to an increase in risk-weighted assets, which reduced our capital ratio. This was offset by other positive factors.

James von Moltke: Our exposure to consumer loans and the credit card business, which is in areas where higher defaults are more likely to happen, and exactly there, our exposure is significantly lower than most of our international peers. Another strength in these difficult times is our capital position. Our common equity tier one ratio finished the year at 13.6%, which is essentially unchanged versus the end of 2019. This ratio is more than 300 basis points higher than our regulatory requirement, which equates to around EUR 10 billion. In Q4, this ratio rose from 13.3% to 13.6%, which was driven primarily by 3 factors. Growth of our client business, which led to an increase in risk-weighted assets, which reduced our capital ratio. This was offset by other positive factors.

We're just in areas through a higher default are more likely to happen.

And exactly there our exposure is significantly lower than most of our international peers.

Another strength in these difficult times is our capital position. Our common equity tier one ratio finished the year at 13.6%, which is essentially unchanged versus the end of 2019. But this ratio is more than 300 basis points higher than our regulatory requirement. Which equates to around 10 billion euros. In the fourth quarter, this ratio rose from 13.3% to 13.6%, which was driven primarily by three factors. Growth of our client business, which led to an increase in risk-weighted assets, which reduced our capital ratio. And this was offset by other positive factors. The capital release unit and made further progress to reduce our [RWAs] and our capital position improved due to higher profit and regulatory changes and how the capital is calculated. Our liquidity reserve of 243 billion euros gives us a strong funding base to support our business.

Our common equity tier one ratio finished the year at 13, 6%, which is essentially unchanged versus the end of 2019.

But this ratio is more than 300 basis points higher than our regulatory requirement.

Which equates to around 10 billion euros.

And the fourth quarter. This ratio rose from 13.3 to 13, 6%, which was driven primarily by three factors growth of our client business, which led to an increase in risk weighted.

Assets, which reduced our capital ratio.

And this was offset.

By other positive factors the capital release unit and made further progress to reduce our <unk> and our capital position improved due to a higher profit and regulatory changes and how the capital is calculated.

Frank Hartmann: The Capital Release Unit made further progress to reduce RWAs, and our capital position improved due to higher profits and regulatory changes in how the capital is calculated. Our liquidity reserves of EUR 243 billion gives us a strong funding base to support our business. Let's now turn to our businesses, starting with the Corporate Bank. Revenues in the Corporate Bank were slightly down at EUR 5.1 billion, or EUR 5.2 billion at ex-specific items. Adjusted for currency movements, revenues remained flat. The results in the Corporate Bank were, in our view, better than it might seem at first glance. The Corporate Bank largely offset interest rate and other macroeconomic headwinds, principally through deposit repricing. By the end of 2020, we had reached repricing agreements on accounts worth around EUR 78 billion, which was also ahead of plan.

James von Moltke: The Capital Release Unit made further progress to reduce RWAs, and our capital position improved due to higher profits and regulatory changes in how the capital is calculated. Our liquidity reserves of EUR 243 billion gives us a strong funding base to support our business. Let's now turn to our businesses, starting with the Corporate Bank. Revenues in the Corporate Bank were slightly down at EUR 5.1 billion, or EUR 5.2 billion at ex-specific items. Adjusted for currency movements, revenues remained flat. The results in the Corporate Bank were, in our view, better than it might seem at first glance. The Corporate Bank largely offset interest rate and other macroeconomic headwinds, principally through deposit repricing. By the end of 2020, we had reached repricing agreements on accounts worth around EUR 78 billion, which was also ahead of plan.

Our liquidity reserve of 243 billion euros gives us a strong funding base to support our business.

Let's now turn to our businesses. Starting with the Corporate Bank. Revenues in the Corporate Bank were slightly down at 5.1 billion euros or 5.2 billion euros at ex-specific items. Adjusted for currency movements revenues remained flat. The results in the Corporate Bank were in our view better than it might seem at first glance. The Corporate Bank largely offset interest rate and other macroeconomic headwinds principally through deposit repricing. By the end of 2020, we had reached re-pricing agreements on accounts worth around 78 billion euros, which was also ahead of plan. This contributes revenues of more than 200 million euros on an annualized basis. Noninterest expenses in the Corporate Bank were down by 13% in 2020. Principally driven by lower transformation-related effects as we make progress on transformation.

Starting with the corporate bank.

Revenues and the corporate bank.

We're slightly down at 1.1 5.1 billion euros of $5 2 billion euros and specific items.

Just it for currency movements revenues remained flat.

The results and the corporate bank, we're and our view better than it might seem at first glance.

The corporate bank, largely offset interest rate and other macroeconomic headwinds principally through deposit repricing.

By the end of 'twenty 'twenty, we had reached re pricing agreements on accounts broke around 78 billion euros, which was also ahead of plan.

This contributes revenues of more than 200 million euros on an annualized basis.

Frank Hartmann: This contributes revenues of more than EUR 200 million on an annualized basis. Non-interest expenses in the Corporate Bank were down by 13% in 2020, principally driven by lower transformation-related effects as we make progress on transformation. Profit before tax was EUR 561 million, up from EUR 92 million in the prior year. Adjusting for specific cost and revenue items, profit before tax was EUR 740 million, equal to a post-tax return on tangible equity of 4.8%. It was lower year-on-year on an adjusted basis. However, the only reason for this was an increase of provisions for credit losses during the COVID-19 pandemic in 2020. Let's now take a deeper look at the results of the Investment Bank. This success has certainly surprised many market observers.

James von Moltke: This contributes revenues of more than EUR 200 million on an annualized basis. Non-interest expenses in the Corporate Bank were down by 13% in 2020, principally driven by lower transformation-related effects as we make progress on transformation. Profit before tax was EUR 561 million, up from EUR 92 million in the prior year. Adjusting for specific cost and revenue items, profit before tax was EUR 740 million, equal to a post-tax return on tangible equity of 4.8%. It was lower year-on-year on an adjusted basis. However, the only reason for this was an increase of provisions for credit losses during the COVID-19 pandemic in 2020. Let's now take a deeper look at the results of the Investment Bank. This success has certainly surprised many market observers.

Noninterest expenses and the corporate bank were down by 13% and 2020.

Principally driven by a lower transformation related effects.

As we make progress on transformation.

Profit before tax was 561 million euros, up from 92 million euros in the prior year. Adjusting for specific costs and revenue items profit before tax was 740 million euros equal to a post-tax return on tangible equity of 4.8%. It was lower year on year on an adjusted basis. However, the only reason for this was an increase of provisions for credit losses during the COVID-19 pandemic in 2020. Let's now take a deeper look at the results of the investment bank. This success has suddenly surprised many market observers. Investment bank revenues were up 32% to 9.3 billion euros. In our fixed income and currency business, revenues grew by 28%.

And from 92 million euros and the prior year.

Adjusting for specific costs and revenue items profit before tax was 700 and was 740 million euros equal.

Two a post tax return on tangible equity of four per day per cent.

It was lower year on year on an adjusted basis. However.

The only reason for this was an increase of provisions for credit losses during the COVID-19 pandemic.

And in 'twenty and 'twenty, let's now take a deeper look at the results of the investment bank. This success. So as suddenly surprised many market observers investment bank revenues were up 32% to $9 3 billion euros.

Frank Hartmann: Investment Bank revenues were up 32% to EUR 9.3 billion. In our Fixed Income and Currencies business, revenues grew by 28%. Origination and advisory revenues were up as much as 34% and grew faster than the industry fee pool in all four quarters of the year. We gained market shares in key areas, notably in investment-grade debt origination. In corporate finance, we captured the number one position in Germany in Q4, and thus we recaptured it. Very important for us, we achieved this revenue performance with a very moderate growth in risk-weighted assets other than regulatory increases. At the same time, we reduced adjusted costs in the Investment Bank by 9%. As a result, our cost income ratio improved to 58% with lower costs, the same capital, and significantly higher revenues. This is a great success.

James von Moltke: Investment Bank revenues were up 32% to EUR 9.3 billion. In our Fixed Income and Currencies business, revenues grew by 28%. Origination and advisory revenues were up as much as 34% and grew faster than the industry fee pool in all four quarters of the year. We gained market shares in key areas, notably in investment-grade debt origination. In corporate finance, we captured the number one position in Germany in Q4, and thus we recaptured it. Very important for us, we achieved this revenue performance with a very moderate growth in risk-weighted assets other than regulatory increases. At the same time, we reduced adjusted costs in the Investment Bank by 9%. As a result, our cost income ratio improved to 58% with lower costs, the same capital, and significantly higher revenues. This is a great success.

And our fixed income and currency business revenues grew by 28%.

Origination and advisory revenues were up as much as 34% and grew faster than the industry fee pool in all four quarters of the year. We gained market shares in key areas. Notably in investment-grade debt origination. In corporate finance, we recaptured the number one position and Germany in the fourth quarter and thus we recaptured it.

And grew faster than the industry fee pool, and all four quarters of the year.

We gained market shares in key areas.

Notably and investment grade debt origination.

And corporate finance recaptured the number one position and Germany, and the fourth quarter and thus we recaptured it.

Very important for us, we achieved this revenue performance with a very moderate growth and risk-weighted assets other than regulatory increases. At the same time, we reduced adjusted costs in the investment bank by 9% as a result, our cost-income ratio improved to 58%. Lower costs, the same capital significantly higher revenues. This is a great success to put it in numbers. Profit before tax was sixfold to 3.2 billion euros. While adjusted pre tax profit was $3.3 billion euros and this equates to a post tax return on tangible equity of around 10%. Our market share gains give us confidence that as markets normalize, a significant portion of the growth we achieved in 2020 is sustainable.

At the same time, we reduced adjusted costs and the investment bank by 9% as a result, our cost income ratio improved to 58%.

Lower costs, the same capital significantly higher revenues.

This is a great success to put it in our numbers.

Frank Hartmann: To put it in numbers, profit before tax was 6-fold to EUR 3.2 billion, while adjusted pretax profit was EUR 3.3 billion. This equates to a post-tax return on tangible equity of around 10%. Our market share gains give us confidence that as markets normalize, a significant portion of the growth we achieved in 2020 is sustainable. Let's continue with the Private Bank. Revenues in the Private Bank were also stable in 2020, including a one-time negative revenue impact from the sale of Postbank Systems in Q4. The Private Bank successfully offset interest rate headwinds with business growth. We achieved higher fee income from insurance partnerships. Net inflows into investment products were EUR 16 billion. Net new client loans were EUR 13 billion, and we repriced deposit accounts with a value of EUR 9 billion.

James von Moltke: To put it in numbers, profit before tax was 6-fold to EUR 3.2 billion, while adjusted pretax profit was EUR 3.3 billion. This equates to a post-tax return on tangible equity of around 10%. Our market share gains give us confidence that as markets normalize, a significant portion of the growth we achieved in 2020 is sustainable. Let's continue with the Private Bank. Revenues in the Private Bank were also stable in 2020, including a one-time negative revenue impact from the sale of Postbank Systems in Q4. The Private Bank successfully offset interest rate headwinds with business growth. We achieved higher fee income from insurance partnerships. Net inflows into investment products were EUR 16 billion. Net new client loans were EUR 13 billion, and we repriced deposit accounts with a value of EUR 9 billion.

Before tax.

It was six fold to 3.2 billion euros.

While adjusted pre tax profit was $3.3 billion euros and this equates to a post tax return on tangible equity of around 10%. Our market share gains give us confidence that as markets normalize, a significant portion of the growth we achieved in 2020 is sustainable.

Our market share gains.

Give us confidence that as markets normalize.

A significant portion of the growth we achieved in 'twenty and 'twenty is sustainable.

Let's continue with a private bank. Revenues in the private bank were also stable in 2020. Including a one-time negative revenue impact from the sale of Postbank systems in the fourth quarter. The private bank successfully offset interest rate headwinds with business growth. We achieved higher fee income from insurance partnerships. Net inflows into investment products were 16 billion euros. Net new client loans rose 13 billion euros and we repriced deposit accounts with a value over 9 billion euros.

Our revenues and the private bank were also stable in 'twenty and 'twenty.

Including a one time negative revenue impact from the sale of Postbank systems and the fourth quarter.

The private bank successfully offset interest interest rate headwinds with business growth.

We achieved higher fee income from insurance partnerships.

Net inflows into investment products were 16 billion euros.

Net new client loans client loans rose 13 billion euros and be repriced deposit accounts with a value over 9 billion euros.

The private bank made a major contribution to Deutsche Banks over-delivery on sustainable finance investment targets. Sustainable finance and investing volumes reached 4 billion euros in loans and 11 billion euros at year-end. The private bank reported a loss of 124 million euros, reflecting 642 million euros of transformation-related effects in that year. Adjusting for these and the specific revenue items profit before taxes was only marginally below last year at 493 million euros, despite higher loan loss provisions due to the pandemic. And in this market environment, it was a strong result, as it was indeed also for the corporate bank. And this brings us to asset management. In asset management revenues were $2.2 billion euros in 2020, down 4%.

Frank Hartmann: The Private Bank made a major contribution to Deutsche Bank's over-delivery on sustainable finance investment targets. Sustainable finance and investing volumes reached EUR 4 billion in loans and EUR 11 billion in investment products at year-end. The Private Bank reported a loss of EUR 124 million, reflecting EUR 642 million of transformation-related effects in that year. Adjusting for these and the specific revenue items, profit before taxes was only marginally below last year at EUR 493 million, despite higher loan loss provisions due to the pandemic. In this market environment, it was a strong result, as it was indeed also for the Corporate Bank. This brings us to Asset Management. In Asset Management, revenues were EUR 2.2 billion in 2020, down 4%.

James von Moltke: The Private Bank made a major contribution to Deutsche Bank's over-delivery on sustainable finance investment targets. Sustainable finance and investing volumes reached EUR 4 billion in loans and EUR 11 billion in investment products at year-end. The Private Bank reported a loss of EUR 124 million, reflecting EUR 642 million of transformation-related effects in that year. Adjusting for these and the specific revenue items, profit before taxes was only marginally below last year at EUR 493 million, despite higher loan loss provisions due to the pandemic. In this market environment, it was a strong result, as it was indeed also for the Corporate Bank. This brings us to Asset Management. In Asset Management, revenues were EUR 2.2 billion in 2020, down 4%.

Sustainable finance and investing volumes reached 4 billion euros, and loans and 11 billion euros and and.

And then product and year end.

The private bank.

We reported a loss of 124 million euros, reflecting 642 million euros of transformation related effects and that year.

Adjusted for these and the specific revenue items profit before taxes was only marginally below last year at 493 million euros, despite higher loan loss provisions due to reopen that pandemic.

And in this market environment. It was a strong result, as it was indeed also for the corporate bank.

And this brings us to asset management and asset management revenues were $2 2 billion euros and 2020 down 4%.

This reflects certain performance large performance fees of last year, which did not occur in 2020. However, management fees, which account for the majority of revenues were essentially stable as inflows and a favorable mix of the assets under management offset the industry-wide margin compression. The business attracted a record 30 billion euros in net inflows in the new year. Including 14 billion euros in the last quarter alone. Assets under management rose to 793 billion euros at year-end. The highest level for DWS since 2013. Profit before tax was 544 million euros, an increase of 16%. Adjusted costs, excluding transformation charges, were down 10%, reflecting successful cost management. And of course, supported by the favorable environment at present, this more than offset the 4% decline in revenues. Thus, the cost-income ratio of asset management improved to 68%. And DWS reached its target ratio of 65% one year earlier than expected.

Frank Hartmann: This reflects certain performance, large performance fees of last year, which did not occur in 2020. However, management fees, which account for the majority of revenues, were essentially stable as inflows and the favorable mix of the assets under management offset the industry-wide margin compression. The business attracted a record EUR 30 billion in net inflows in the year, including EUR 14 billion in the last quarter alone. Assets under management rose to EUR 793 billion at year-end, the highest level for DWS since 2013. Profit before tax was EUR 544 million, an increase of 16%. Adjusted costs, excluding transformation charges, were down 10%, reflecting successful cost management and of course, supported by the favorable environment at present. This more than offset the 4% decline in revenues.

James von Moltke: This reflects certain performance, large performance fees of last year, which did not occur in 2020. However, management fees, which account for the majority of revenues, were essentially stable as inflows and the favorable mix of the assets under management offset the industry-wide margin compression. The business attracted a record EUR 30 billion in net inflows in the year, including EUR 14 billion in the last quarter alone. Assets under management rose to EUR 793 billion at year-end, the highest level for DWS since 2013. Profit before tax was EUR 544 million, an increase of 16%. Adjusted costs, excluding transformation charges, were down 10%, reflecting successful cost management and of course, supported by the favorable environment at present. This more than offset the 4% decline in revenues.

However, management fees, which account for the majority of revenues were essentially stable.

As inflows and a favorable mix of the assets under management offset the industry wide margin compression.

The business attracted a record 30 billion euros in net inflows and new year.

Including 14 billion euros, and the last quarter alone.

Assets under Mesic Man day management Rose to 793 billion euros at year end.

The highest level for dws since 2013.

Profit before tax was 544 million euros.

And increase of 16%.

Adjusted costs, excluding transformation charges were down 10%, reflecting successful cost management.

And of course supported by the favorable environment at present, this more than offset the 4% decline and revenues.

Thus the cost income ratio of asset management improved to 68%.

Frank Hartmann: Thus, the cost income ratio of asset management improved to 68%, and DWS reached its target ratio of 65% one year earlier than expected. Finally, I would like to look at our Capital Release Unit, which maintained its pace of de-risking in Q4. At year-end, leverage exposure was down to EUR 72 billion, ahead of the guidance of EUR 80 billion. Risk-weighted assets were also reduced to EUR 34 billion versus the original target of EUR 38 billion, which we had set as a target in July 2019. Since the end of 2018, our leverage exposure in the Capital Release Unit is down by three quarters, and the risk-weighted assets by more than half. This balance sheet reduction helped improve our capital position, more than offsetting the net income impact of the Capital Release Unit.

James von Moltke: Thus, the cost income ratio of asset management improved to 68%, and DWS reached its target ratio of 65% one year earlier than expected. Finally, I would like to look at our Capital Release Unit, which maintained its pace of de-risking in Q4. At year-end, leverage exposure was down to EUR 72 billion, ahead of the guidance of EUR 80 billion. Risk-weighted assets were also reduced to EUR 34 billion versus the original target of EUR 38 billion, which we had set as a target in July 2019. Since the end of 2018, our leverage exposure in the Capital Release Unit is down by three quarters, and the risk-weighted assets by more than half. This balance sheet reduction helped improve our capital position, more than offsetting the net income impact of the Capital Release Unit.

And dws reached its target ratio of 65% one year earlier than expected.

Finally, I would like to look at our capital release unit. Which maintained its pace of de-risking in the fourth quarter. At year-end, leverage exposure was down to 72 billion euros. Ahead of the guidance of 80 billion euros. Risk-weighted assets were also reduced to 34 billion euros versus the original target of 38 billion euros, which we had set as a target in July 2019. Since the end of 2018, our leverage exposure in the capital release unit is down by three quarters. And the risk-weighted assets by more than half. This balance sheet reduction helped improve our capital position. More than offsetting the net income impact of the capital release unit.

I would like to look at our capital release unit rich.

Rich maintained its pace of de risking in the fourth quarter.

At year end leverage exposure was down to 72 billion euros.

Ahead of the guidance of 80 billion euros.

Risk weighted assets were also reduced to 34 billion euros.

Versus the original target of 38 billion euros, which we had set as a target in July 2019.

Since the end of 'twenty 18, our leverage exposure and the capital release unit is down by three quarters.

And the risk weighted assets.

By more than half.

This balance sheet reduction helped improve our capital position.

More than offsetting the net income impact of the capital release unit.

The unit also reduced noninterest expenses significantly by 43% in 2020 and this also reduced its loss before taxes significantly to $2.2 billion euros. That summarizes our full-year results. Given the current environment, we are more than pleased with these numbers. We have delivered in line with or even ahead of all of our milestones. We're making good progress with our transformation in line with plan and we will continue along this path with the same determination for the outlook on 2021 and beyond. And let me now hand it back to Christian again. Thank you very much.

Frank Hartmann: The unit also reduced non-interest expenses significantly, namely by 43% in 2020, and this also reduced its loss before taxes significantly to EUR 2.2 billion. That summarizes our full year results. Given the current environment, we are more than pleased with these numbers. We have delivered in line with or even ahead of all of our milestones. We're making good progress with our transformation in line with plan, and we will continue along this path with the same determination. For the outlook on 2021 and beyond, let me now hand back to Christian again. Thank you very much.

James von Moltke: The unit also reduced non-interest expenses significantly, namely by 43% in 2020, and this also reduced its loss before taxes significantly to EUR 2.2 billion. That summarizes our full year results. Given the current environment, we are more than pleased with these numbers. We have delivered in line with or even ahead of all of our milestones. We're making good progress with our transformation in line with plan, and we will continue along this path with the same determination. For the outlook on 2021 and beyond, let me now hand back to Christian again. Thank you very much.

That summarizes our full year results.

Given the current environment, we are more than pleased with these numbers we have delivered in line with or even ahead of all of our milestones.

We're making good progress with our transformation in line with plan and we will continue along this path with the same determination.

For the outlook.

On 'twenty 'twenty, one and beyond and let me now hand back to Christian again, Thank you very much.

Okay.

Yes, I'm on it that much.

Well, ladies and gentlemen, 18 months after the launch of our new strategy, we've achieved better results than originally planned. So now what defines this third phase that has just started. Firstly, we must remain as disciplined as we spin up to now. This applies to adjusted costs, which we want to reduce to $16.7 billion euros, excluding transformation changes by 2021. It also applies to our controls where we continue to invest and it applies to our balance sheet and our risk appetite, which we are managing conservatively.

Christian Sewing: Well, ladies and gentlemen, 18 months after the launch of our new strategy, we've achieved better results than originally planned. Now what defines this third phase that has just started? Firstly, we must remain as disciplined as we've been up to now. This applies to our adjusted costs, which we want to reduce to EUR 16.7 billion, excluding transformation changes by 2021. It also applies to our controls, where we continue to invest, and it applies to our balance sheet and our risk appetite, which we are managing conservatively. Secondly, we need to grow sustainably. Meaning that we do not only want to continue increasing our revenues, but that we want to do this in an environmentally and socially responsible manner. Now, we are aware that the macroeconomic environment remains uncertain.

And <unk>.

18 months after the launch of our new strategy, we've achieved better results than originally planned.

So now what defines this third phase that has just started.

Firstly, we must remain as disciplined as we spin up to now of disciplines to adjusted costs, which we want to reduce to $16 7 billion euros, excluding transformation changes by 2021.

It also applies to our controls where we continue to invest and it applies to our balance sheet and our risk appetite, which we are managing conservatively.

Secondly, we need to grow sustainably, meaning that we do not only want to continue increasing our revenues but that we want to do this in an environmentally and socially responsible manner. Now, we are aware that the macroeconomic environment remains uncertain. Yes, the vaccines gives us hope that our private and professional lives may soon return to normal. And government stimulus programs, as well as central bank's monetary policies, will support the global economy. Now, that is fundamentally more positive outlook. So don't mislead us about two facts. Normalization will take time. And the post-COVID economy will look different than before.

And we want to do this in an environmentally and socially responsible manner.

Now we are aware that the macroeconomic environment remains uncertain.

Yes, the vaccines gives us hope that are private and professional lives may soon returned to normal.

Christian Sewing: Yes, the vaccines give us hope that our private and professional lives may soon return to normal. Government stimulus programs, as well as central banks' monetary policies, will support the global economy. This fundamentally more positive outlook should not mislead us about two facts. Normalization will take time, and post-COVID economy will look different than before. The pandemic has accelerated the fundamental changes that were already underway. Now why are we still optimistic about our own business, our franchise? Now, because all of our four businesses are now in a strong position, and because we see some major trends that will shape the global economy and banking in the years ahead. Digitalization, climate change, aging societies, and the increasing fragmentation of the global economy are making it necessary to restructure entire value chains, some of which will even be completely broken up.

And government stimulus programs as well as central bank's monetary policies will support the global economy.

Now that is fundamentally more positive outlook.

And don't mislead us about two facts.

Normalization will take time.

And post Covid economy will look different than before.

The pandemic has accelerated the fundamental changes that were already underway. Now, why are we still optimistic about our own business our franchise. Now because all of our four businesses are now and our strong position. And because we see some major trends that will shape the global economy and banking in the years ahead. Digitalization, climate change. Ageing societies and the increasing fragmentation of the global economy are making it necessary to restructure and tire value chains, some of which will even be completely broken up. As a universal bank with a focused business portfolio and global network, we believe that we are well equipped and prepared for these trends. Because we see for growth areas as a result of that.

Now why are we still optimistic about our own business our franchise.

Now because all of our four businesses on our and our strong position.

And because we see some major trends that will shape, the global economy and banking and the years ahead.

Sure.

Digitalization and climate change.

Aging societies, and the increasing fragmentation of the global economy.

And making it necessary to restructure and tire value chains, some of which will even be completely broken up.

As a universal bank with a focused business portfolio and global network.

Christian Sewing: As a universal bank with a focused business portfolio and a global network, we believe that we are well-equipped and prepared for these trends. Because we see four growth areas as a result of that. Now firstly, there will be a growing need for financing by companies and governments worldwide, not only to overcome the pandemic, but also to finance the transformation of the economy. Now, this is where our clients will rely on our Corporate Bank and Investment Bank. In particular, we are one of the world's leading providers of financing. Be it our lending ability, our bond issuance business, or trading in fixed income securities, our expertise will be particularly in demand in this environment. Now, in all of these areas, we have impressively demonstrated in the past year that we are able to gain market share again.

And we believe that we are well equipped and prepared to these trends.

Yes.

Because we see for growth areas as a result of that.

Now firstly, there will be a growing need for financing by companies and governments worldwide not only to overcome the pandemic but also to finance the transformation of the economy. Now, this is where our clients will rely on our corporate bank and investment bank and in particular, we are one of the world's leading providers of financing. Be it our lending ability, a bond issuance business or trading and fixed income securities. Our expertise will be particular and demand in this environment. Now, in all of these areas, we have impressively demonstrated in the past year that we are able to gain market share again. And we also had a strong and promising start into the new year. Let's have a look at the second trend. In times of negative interest rates, pension provision and wealth preservation are becoming increasingly challenging. Now, in times where there are hardly any risk-free returns left, banks with extensive advisory expertise with a particular in demand. It's clear that we are suffering from low-interest rates, but we have adapted to them. And we have the necessary expertise and global investment advice and risk management to be a reliable partner for our clients.

And our clients will rely on our corporate bank and investment Bank and particular, we are one of the world's leading providers of financing.

Theta lending ability, a bond issuance business or trading and fixed income securities.

Our expertise will be particular and demand in this environment.

Now and all of these areas, we have impressively demonstrated in the past year, and we are able to gain market share again.

And we also had a strong.

Christian Sewing: We also had a strong and promising start into the new year. Now let's have a look at the second trend. In times of negative interest rates, pension provision and wealth preservation are becoming increasingly challenging. Now, in times where there are hardly any risk-free returns left, banks with extensive advisory expertise will be particularly in demand. It's true that we are suffering from low interest rates, but we have adapted to them, and we have the necessary expertise in global investment advice and risk management to be a reliable partner for our clients. Now, what's also of particular importance is our global network, and especially when the global economy is becoming more complex. We have a presence on the ground in some 60 countries, and our global network spans 151 countries. There's hardly any other European bank that can match this.

And promising start into the new year.

Let's have a look at the second trend.

And times of negative interest rates pension provision and wealth preservation are becoming increasingly challenging now and.

Times, where there are hardly any risk free returns left fangs with extensive advisory expertise with a particular and demand.

It's so that we are suffering from low interest rates, but we have adapted to them.

And we have the necessary expertise and global investment and advise and risk management to be a reliable partner for our clients.

Now, what's also of particular importance is our global network. And especially when the global economy is becoming more complex. We have a presence on the ground in some 60 countries and our global network spans 151 countries. There's hardly any other European bank that can match this. We know the local markets and understand the regional specificity is. Now, this is of considerable value is where it trade is now becoming partially fragmented, making the exchange of goods and services more complex. Ladies and gentlemen. And also the bridge between Asia and Europe is becoming more important than ever and especially in Asia we have one of the strongest networks of all banks. We are also well placed for the [fourth-day] trend, which is sustainability. Thanks to our financing expertise, we can conclude the investment product set and on particular demand in 2020, we laid the foundation for playing a major role here.

And especially when the global economy is becoming more complex.

We have a presence on the ground and some 60 countries and our global network spans 151 countries.

There's hardly any other European bank debt can match this.

No the local markets and understand the regional specificity is now this is of considerable value is where it trade is now becoming partially fragmented, making the exchange of goods and services more complex.

Christian Sewing: We know the local markets. We understand the regional specificities. Now, this is of considerable value as world trade is now becoming partially fragmented, making the exchange of goods and services more complex. Ladies and gentlemen, and also the bridge between Asia and Europe is becoming more important than ever. Especially in Asia, we have one of the strongest networks of all banks. We are also well-placed for the fourth big trend, which is sustainability. Thanks to our financing expertise, we can create the investment products that are now in particular demand. In 2020, we laid the foundation for playing a major role here. Our efforts and achievements show what our bank is capable of when we unite to pursue an idea.

Ladies and gentlemen.

And also the bridge between Asia, and Europe is becoming more important than ever and especially in Asia. We have one of the strongest networks of all banks.

We are also well placed for the fourth day trend, which is sustainability.

Thanks to our.

Financing expertise, we can conclude the investment product set and on particular demand and 2020, we laid the foundation for playing a major role here.

Our efforts and achievements show what our bank is capable of and we unite to pursue an idea. Facilitated over 40 billion euros, and sustainable finance and investments last year. Which is actually more than twice as much as we planned for 2020, ladies and gentlemen. By 2025, we have committed to reaching 200 billion and this is without DWS, which is already on a very strong track in field of sustainability. To achieve our goals, we have further strengthened our governance by creating a sustainability committee a board level. With our focus on these four growth areas, we aim to expand our leading positions in all four businesses.

Facilitated over 40 billion euros, and sustainable finance and investments last year.

Christian Sewing: We syndicated over EUR 40 billion in sustainable finance and investments last year, which is actually more than twice as much as we planned for 2020, ladies and gentlemen. By 2025, we have committed to reaching EUR 200 billion, and this is without DWS, which is already on a very strong track in the field of sustainability. To achieve our goals, we have further strengthened our governance by creating a sustainability committee at board level. With our focus on these four growth areas, we aim to expand our leading positions in all four businesses. Now, how will we do this? Let's start with our Private Bank. It has consolidated its position in the home market, in selected European markets, and its global wealth management business. One result of this is that, like our Corporate Bank, it managed to keep its revenues stable under these conditions.

Which is.

Actually more than twice as much as we planned for 'twenty and 'twenty, ladies and gentlemen.

By 2025, we have committed to reaching 200 billion and this is without dws, which is already on a very strong track and failed to sustainability.

To achieve our goals, we have further strengthened our governance by creating a sustainability committee and board level.

With our focus on these four growth areas, we aim to expand our leading positions and all four businesses.

Yeah.

Now let's start with our private bank. It has consolidated its position in the home market and selected European markets and its global wealth management business. One result of this is that like a corporate bank, it managed to keep its revenue stable under these conditions. In the coming years, we planned to increase our fee income further escalate in 2020 when we recorded 16 billion years of inflows into investment products. Furthermore, we aim to intensify the cooperation with our corporate partners. We also aim to continue growing our loan business in 2020 we achieved net new client loans of 13 billion years, a trajectory we aim to maintain. In our wealth management business, we are already reaping the benefits of our investment and expansion. And we continue to hire client advisors worldwide. And at the same time, we continue to adapt to the changing needs of our clients and are working to achieve our cost targets.

It has consolidated its position and home market and selected European markets and its global wealth management business.

One result of this is that like a corporate bank and managed to keep its revenue stable under these conditions.

And the coming years.

Christian Sewing: In the coming years, we plan to increase our fee income further, as we did in 2020, when we recorded EUR 16 billion of inflows into investment products. Furthermore, we aim to intensify the cooperation with our cooperation partners. We also aim to continue growing our loan business. In 2020 we achieved net new client loans of EUR 30 billion, a trajectory we aim to maintain. In our wealth management business, we are already reaping the benefits of our investment and expansion, and we continue to hire client advisors worldwide. At the same time, we continue to adapt to the changing needs of our clients and are working to achieve our cost targets. When a further 100 Deutsche Bank branches in Germany have been closed, as planned, our nationwide branch network will be more than 40% smaller than in 2016.

<unk> planned to increase our fee income further escalate in 'twenty and 'twenty. When we recorded 16 billion years of inflows into investment products.

Furthermore, we aim to intensified a cooperation with a corporation partners.

We also aim to continue growing our loan business and 'twenty and 'twenty, we achieved net new client loans of 13 billion years, a trajectory we aim to maintain.

And our wealth management business, we are already reaping the benefits of our investment.

And and expansion and we continue to hire client advisors worldwide and at the same time, we continue to adapt to the changing needs of our clients and are working to achieve our cost targets.

When a further 100 Deutsche Bank branches in Germany have been closed as planned, our nationwide branch network will be more than 40% smaller than in 2016. The planned closure of also 100 Postbank branches over the next two years represents a reduction of more than 30%. And the same time our mobile App has increasingly become and the central point of contact with our customers. And once those personal interactions with advisers and customer relationship managers. This is what makes it possible to give customers much more individual service. In the past, people might come to a branch once a week. Now if you're using a mobile app and contact with us almost every day. And we see that in 2020, for example, and a number of uses and logins for the German private banking business mobile at both jumped by about 35%.

Christian Sewing: The planned closure of also 100 Postbank branches over the next two years represents a reduction of more than 30%. At the same time, our mobile app is increasingly becoming the central point of contact with our customers. Alongside personal interactions with our advisors, and customer relationship managers, the digital world makes it possible to give customers much more individual service. In the past, people might have come to a branch once a week. Now, if you're using our mobile app, you're in contact with us almost every day. We see that in 2020, for example, the number of users and logins for the German Private Bank mobile app both jumped by about 35%. Now let's move to our Corporate Bank.

And the same time and mobile App has increasingly become and the central point of contact with our customers and.

And once that personal interactions with advisers and customer relationship managers.

And.

That gets you to what makes it possible to give customers much more individuals service and the pulse people might come to a branch once a week now if you're using a mobile app and contact with US almost every day and we see that in 'twenty and 'twenty for example, and a number of uses and logins for the German private banking business mobile at both jumped by about 35%.

Now let's move to our corporate bank. With its strong pillars, India and Asia, the corporate bank exemplifies our position as a global house bank more than any other business. With these regions, we see as much potential to near future as we do for say payments, where our business with syntax, online retailers and digital blood platforms already grew by 20% in 2020. And this is only just the beginning. We also want to grow further with 800,000 business clients in Germany's segment between small businesses and [inaudible] we have neglected in the past. Being the market leader, we have now established a dedicated unit, which will serve business clients from across all our brands from a single source in the future including correspondent digital solutions.

And.

With its strong pillars, India and Asia, the corporate bank exemplifies our position as a global house bank more than any other business.

Christian Sewing: With its strong pillars as in Asia, the corporate bank exemplifies our position as a global house bank more than any other business. With these regions, we see as much potential in the near future as we do for, say, payments, where our business with FinTechs, online retailers, and digital platforms already grew by 20% in 2020. This is only just beginning. We also want to grow further with our 800,000 business clients in Germany, a segment between small businesses and the Mittelstand, SMEs that we have neglected in the past. Being the market leader, we have now established a dedicated unit which will serve business clients from across all our brands from a single source in the future, including correspondent digital solutions.

With this regions, we see as much pretension to near future as we do for say payments, where our business with syntax online retailers and digital blood platforms already grew by 20% and 2020.

And this is only just beginning.

We also want to grow further with a 800000 business clients and Germany is segment between small businesses and the mixed stand.

S amazed that we have neglected in the past.

Being the market leader, we have now established a dedicated unit, which will serve business clients from across all our brands from a single source and the future including correspondent digital solutions.

And of course, offsetting shortfalls and revenues due to negative interest rates will continue to be crucial on the path towards achieving our revenue target of $5.5 billion euros. Second half of '22 we've had better here than many of our national and international peers. The collaboration between our corporate bank and unless and bank is improving all the time, another reason why we see so much more potential for our corporate bank. Now, let me emphasize one thing quite clearly. Our investment banking business is not about securities trading for its own sake. It is about supporting our clients. Especially corporate institutions and sovereigns. Investment Bank was its success largely to us focusing on our strength and the capital markets business, namely fixed income and currencies. As well as in origination and advisory.

Christian Sewing: Of course, offsetting shortfalls in revenues due to negative interest rates will continue to be crucial on the path towards achieving our revenue target of EUR 5.5 billion. H2 2022, we fared better here than many of our national and international peers, however. The collaboration between our Corporate Bank and Investment Bank is improving all the time, another reason why we see so much more potential for our Corporate Bank. Now, let me emphasize one thing quite clearly. Our Investment Banking business is not about securities trading for its own sake. It is about supporting our clients, especially corporates, institutions, and sovereigns. Investment Bank owes its success largely to us focusing on our strengths in the capital markets business, namely Fixed Income & Currencies, as well as in origination and advisory.

Offsetting shortfalls and revenues due to negative interest rates will continue to be crucial and the path towards achieving our revenue target of $5 5 billion euros second half of 'twenty, two and we've had better here than many of our national and international peers. However.

The collaboration between our corporate bank and unless and bank is improving all the time and another reason why we see so much more potential for our corporate bank.

Yeah.

Let me emphasize one thing quite clearly.

Our investment banking business is not about securities trading fluids and sake.

It is about supporting our clients.

Especially corporates institutions and sovereigns.

Investment Bank and was it success largely to us focusing on our strength and the capital markets business, namely fixed income and currencies.

As well as in origination and advisory.

Now, whether we extend the company low and a range of bond issue. It's always about finding always and only about finding the best solution for the client. Now we benefit more than other banks from global financing demand because we have a unique infrastructure among continental European banks that allows us to offer the full range of services. Institutional investors greatly appreciate that. With the 100 most important clients during the past year, we increased our revenues by more than 30% and the origination and advisory business or market share was high and every quoted and the corresponding creative period and in the rapidly growing businesses of Green bonds, we are among the top five on a global scale. Now that underlines the fact that our growth in 2020 was not just the result of favorable market conditions, but is to a large extent sustained.

Christian Sewing: Now, whether we extend a company loan or arrange a bond issue, it's always and only about finding the best solution for the client. Now, we benefit more than other banks from global financing demand because we have a unique infrastructure among continental European banks that allows us to offer the full range of services. Institutional investors greatly appreciate that. With our 100 most important clients during the past year, we increased our revenues by more than 30%. In the origination and advisory business, our market share was higher in every quarter than in the corresponding prior period. In the rapidly growing business of green bonds, we are among the top 5 on a global scale.

It's always it's always about finding always and only about finding the best solution for the client.

Now we benefit more than other banks from global financing demand because we have a unique infrastructure among continental European banks that allows us.

To offer the full range of services.

Institutional investors greatly appreciate that.

King.

And with a 100 most important clients during the past year, we increased our revenues by more than 30% and the origination and advisory business. Our market share was high and every quoted and and the corresponding creative period and and the rapidly growing businesses of Green bonds. We are among the top five on a global scale now that underlines the fat.

Christian Sewing: That underlines the fact that our growth in 2020 was not just a result of favorable market conditions, but is, to a large extent, sustainable. We have every intention to build on this and to further strengthen our competitive position in origination and advisory. At the same time, we make targeted investments in our Fixed Income & Currencies business to grow more efficiently using advanced technology. However, we will certainly not relax our risk standards while doing so. All in all, this means that even if the markets should largely return to normal, we consider Investment Bank revenues of EUR 8.5 billion in 2020 within reach. Asset manager DWS is specifically benefiting from major global trends.

And that our growth and 2020, let's not just the result of favorable market conditions, but is.

To a large extent sustained them.

Now we have every intention to build on this and to further strengthen our competitive position, origination and advisory. And at the same time, we make targeted investments and our fixed income and currencies business to grow more efficiently using advanced technology. However, we will certainly not relax our risk standards, while doing so. Now, all in all of this means that even if the markets should largely return to normal, we consider investment bank revenues of $8.5 billion euros in 2020 within reach. Now, asset manager DWS assets, specifically benefiting from more global trends with record inflows in 2020 and our strong position in the market for ESG products, we are ideally positioned to meet the growing demand for sustainable investments. And now and this is especially true, but not only for strong European domestic market. Despite the pressure on margins in the industry, we expect to be able to grow our revenue slightly by 2022. We, therefore, see scope for further profit increases, especially in the medium term. Efficiency should also increase further. In 2020 already the adjusted cost-income ratio of DWS is down to 64%. Ladies and gentlemen. For businesses with a strong position and for responses to important global trends. There will be the basis for future growth and increased profitability.

And at the same time, we make targeted investments and our fixed income and currencies business to grow more efficiently using advanced technology. However.

However.

And he was sadly not relax our risk standards, while doing so.

Yeah.

Now all and all of this means that even if the markets should largely returned to normal.

We'd consider.

Invest and bank revenues of $8 5 billion euros and 2020 within reach.

Now asset manager DWA assets, specifically benefiting from more global trends with record inflows in 'twenty and 'twenty and our strong position on the market for ESG product, we are ideally positioned to meet the growing demand for sustainable investments now.

Christian Sewing: With record inflows in 2020 and our strong position in the market for ESG products, we are ideally positioned to meet the growing demand for sustainable investments. Now, this is especially true, but not only for our strong European domestic market. Despite the pressure on margins in the industry, we expect to be able to grow our revenue slightly by 2022. We therefore see scope for further profit increases, especially in the medium term. Efficiency should also increase further. In 2020 already, the adjusted cost-income ratio of DWS was down to 64%. Ladies and gentlemen, four businesses with a strong position and four responses to important global trends. That will be the basis for future growth and increased profitability. At the same time, we will not let up on our cost discipline, quite to the contrary.

And now and this is especially true, but not only for strong European domestic market.

Despite the pressure on margins and the industry big step expect to be able to grow our revenue slightly by 2022, we therefore see scope for further profit increases, especially in the medium term.

Yes.

Efficiency should also increase further.

In 'twenty and 'twenty already the adjusted cost income ratio of dws is down to 64%.

Ladies and gentlemen.

And our businesses with a strong position and full responses to important global trends.

There will be the basis for future growth and increased profitability.

Right.

At the same time, we will not let up on our cost discipline quite to the contrary. After almost 6 billion euros and cost reductions we announced for the four years from 2019 to 2022. We have already achieved more than half. To achieve our 2020 target, we must now cut another 2.8 billion euros in adjusted costs. And of course, this requires further effort. But why do we think this is possible? Now, because many of our cost-saving measures will take full effect from this year onward only and because we already have plans for our next steps. Now, this includes targeted investments, which will make us then bring additional cost savings from 2022 onwards, and also the Coronavirus crisis creates the potential for greater cost savings to give you just two examples we are a year and how much office space we need in which location and we will certainly spend less on travel in the future than we did pre-COVID-19.

Yes.

After almost 6 billion euros and cost reductions, we announced for the four years from 2019 to 'twenty to 'twenty two.

Christian Sewing: Of the almost EUR 6 billion in cost reductions we announced for the 4 years from 2019 to 2022, we have already achieved more than half. To achieve our 2020 target, we must now cut another EUR 2.8 billion in adjusted costs. Of course, this requires further effort. Why do we think this is possible? Now, because many of our cost saving measures will take full effect from this year onward only, and because we already have plans for our next steps. Now, this includes targeted investments, which will make us then bring additional cost savings from 2022 onwards. Also, the coronavirus crisis created potential for greater cost savings.

We have already achieved more than half.

To achieve our 'twenty and 'twenty target, we must now cut another 2.8 billion euros and adjusted costs.

And of course this requires further effort.

But why do we think this is possible.

Now because many of our cost saving measures will take full effect from this year on what only and because we already have plans for next steps.

Now this includes targeted investments, which will make us then.

Bring additional cost savings from 'twenty and 'twenty two onwards, and also the Corona virus coronavirus crisis create the potential for greater cost savings to give you. Just two examples we are a year and how much office space, we need and which location and we will certainly spend less on travel and the future than we did pre COVID-19.

Christian Sewing: To give you just two examples, we are reviewing how much office space we need in which location, and we will certainly spend less on travel in the future than we did pre-COVID. Now, that is why we announced at our Investor Deep Dive in December that we want to reduce our annual adjusted costs to EUR 16.7 billion, excluding transformation charges by 2022. Just by reaching our cost targets, we can get close to a target of a post-tax return on tangible equity of 8%. In short, it is largely in our own hands. We are also confident because we don't have to continually fundamentally change the way we operate. Our results would not have been possible in the way they turned out if we had not placed our clients further at the center of our strategy and our daily activities.

So that is why we announced at our investor deep dive in December that we want to reduce the annual adjusted costs to $16.7 billion euros, excluding transformation charges by 2022. So just by reaching our cost targets, we can get close to a target oven post-tax return on tangible equity of 8%. In short, it is largely in our own hands. We are also confident because we have and continue to lead to fundamentally change the way we operate. Our results would not have been possible in the way they turned in, if we had not placed our clients further at the center of our strategy in our daily activities. Of course, there's still a lot to be done, but we have already made good progress. This also applies to our leadership culture as reflected in lots of positive feedback from employees. They also see purpose in the use of technology, which strengthens our controls and our client offering. The partnership with Google is a paradigm shift in this regard. We are also building on our traditionally strong risk management alongside managing our own balance sheet, we also manage our clients' risks. This must and will remain at the center of our business.

Two.

$16 7 billion euros, excluding transformation charges by 2022.

So.

Just by reaching our cost targets and King.

Get close to a target oven post tax return on tangible equity of 8% and short.

It is largely and our own hands.

We are also confident because we have and continue to lead to fundamentally change the way we operate.

Our results would not have been possible and the way they tend and if we had not placed our clients further at the center of our strategy and our daily activities.

Of course, there's still a lot to be done, but we have already made good progress.

Christian Sewing: Of course, there is still a lot to be done, but we have already made good progress. This also applies to our leadership culture as reflected in lots of positive feedback from employees. We also see progress in use of technology which strengthens our controls and our client offering. The partnership with Google is a paradigm shift in this regard. We are also building on our traditionally strong risk management. Alongside managing our own balance sheet, we also manage our clients' risks. This must and will remain at the center of our business. On sustainability, well, I already said quite a lot. We now have the structure to offer financing and investments according to strict environmental, social, and governance criteria. Change in the culture in our bank will not be complete within a year or two.

This also applies to our leadership culture.

As reflected in lots of positive feedback from employees.

They also see purpose and use of technology, which strengthens our controls and our client offering.

The partnership with Google is a paradigm shift and disregard.

We are also building on our traditionally strong risk management alongside managing our own balance sheet.

And also manage on clines risks.

This must and will remain at the center of our business.

On sustainability. And what we said quite a lot and after structure to offer financing and investments according to strict environmental, social and governance criteria. Changing the culture in our bank will not be complete within a year or two. But when I look at the progress we have made, when I see and feel the momentum, the attitude and dedication throughout our bank, I'm really optimistic. Ladies and gentlemen. After the second phase of a fundamental transformation, we can be satisfied with what we have achieved. And we look forward with a great deal of confidence. After six quarters of transformation, we are ahead of schedule, despite a global pandemic. Now, what have we achieved? We have demonstrated our stability and resilience with strong capital, highly quiddity and conservative risk management. We have cut our costs for 12 consecutive quarters. We have demonstrated that we can grow. W have significantly increased our 2020 revenues and are confident that a substantial part of this increase will be sustainable. Also a very very good start into the new year's also fully reinforced our confidence in our business.

And what he said quite a lot and after structure to offer financing and investments according to strict environmental social and governance criteria.

Changing the culture and a bank will not be complete within a year or two.

But when I look at the progress we have made.

Christian Sewing: When I look at the progress we have made, when I see and feel the momentum, the attitude, and the dedication throughout our bank, I am really optimistic. Ladies and gentlemen, after the second phase of our fundamental transformation, we can be satisfied with what we have achieved, and we look forward with a great deal of confidence. After 6 quarters of transformation, we are ahead of schedule despite a global pandemic. Now what have we achieved? We have demonstrated our stability and resilience with strong capital, high liquidity, and conservative risk management. We have cut our costs for 12 consecutive quarters. We have demonstrated that we can grow. We have significantly increased our 2020 revenues and are confident that a substantial part of this increase will be sustainable. Also, a very, very good start into the new year has also fully reinforced our confidence in our business.

When I see and feel the momentum the attitude and dedication throughout our bank I'm really optimistic.

Ladies and gentlemen.

After the second phase of a fundamental transformation, we can be satisfied with what we have achieved.

And we look forward with great deal of confidence.

After six quarters of transformation. We are ahead of schedule, despite a global pandemic.

And I Wonder if we achieved.

We have demonstrated our stability and resilience.

With strong capital highly quiddity and conservative risk management.

Yeah, Scott on costs.

For 12 consecutive quarters.

We have demonstrated that we can grow with.

Have significantly increased our 'twenty and 'twenty revenues and are confident that a substantial part of this increase will be sustainable.

Yeah.

Also and very very good start into the new year's also fully reinforced our confidence and our business.

And.

Right.

At the same time, we also achieved on balance better results in 2020 than many would've believed us capable of with a pretax profit of more than 1 billion euros and a net income of more than 600 million euros. And we want to build on that now. We are determined to achieve an 8% post-tax return on tangible equity in 2022 and we want to do this in a sustainable fashion. In both meanings of the word. And this is what the next phase of our transformation is all about. We will not let up regarding costs and risk management. And we are going to shift gears on the revenue side. Because we stand firm by our plans that as of 2022, we want to return and 5 billion years of capital to our shareholders. We are confident. But he will remain very disciplined. We are satisfied with the progress made. But we know that there is still a lot to do. Thank you very much and we are now looking forward to your questions.

Christian Sewing: At the same time, we also achieved, on balance, better results in 2020 than many would have believed us capable of, with a pre-tax profit of more than EUR 1 billion and a net income of more than EUR 600 million. Now, we want to build on that now. We are determined to achieve an 8% post-tax return on tangible equity in 2022, and we want to do this in a sustainable fashion, in both meanings of the word. This is what the next phase of our transformation is all about. We will not let up regarding costs and risk management, and we are going to shift gears on the revenue side. We stand firm by our plans that as of 2022, we want to return EUR 5 billion of capital to our shareholders. We are confident, but we will remain very disciplined.

And we want to build on that now.

We are determined.

To achieve.

And 8% post tax return on tangible equity and 'twenty to 'twenty, two and we want to do this in a sustainable fashion and.

And.

Both meetings and what and this is what the next phase of our transformation is all about.

Yeah.

We will not let up regarding costs and risk management.

And we are going to shift gears on the revenue side.

Because we stand by our plans.

Debt.

As of 2022, we want to return and 5 billion years of capital to our shareholders.

We are confident.

But he will remain very disciplined we are satisfied with the progress made but.

Christian Sewing: We are satisfied with the progress made, but we know that there's still a lot to do. Thank you very much, and we are now looking forward to your questions.

But we know the day Este Lauder do.

Thank you very much and we are now looking forward to your questions.

This brings us to our Q&A session via Zoom, via chat or via telephone. Now we've got to slightly more than one hour for questions and answers and I already have got a long list of requests for the floor. And we really want to give everybody the opportunity to ask one question at least and therefore, we'd like to limit the number of questions to two in the first round at least. And we're going to start with Patricia [inaudible] from [inaudible] via telephone. Hello, Patricia. First question. You seem to have a technical hiccup or is she there, Patricia?

Frank Hartmann: This brings us to our Q&A session via Zoom, via chat or via telephone. Now, we've got slightly more than one hour for questions and answers, and I already have got a long list of requests for the floor. We really want to give everybody the opportunity to ask one question at least, and therefore we'd like to limit the number of questions to two in the first round at least. We're going to start with Patricia Uhlig from Reuters via telephone. Hello, Patricia. First question. Well, we seem to have a technical hiccup, or is she there? Patricia? Good morning, gentlemen. I really regret that I cannot be on site today. It's all different. I've got two questions. Now, last year, for the first time since 2014, you once again generated profits, and 2021 will also be positive again.

Now we've got to slightly more than one hour for Chris and questions and answers and I already have got a long list.

Of requests for the floor.

And we really want to give everybody the opportunity to ask one question at least and therefore, we'd like to.

Limit the number of questions to two in the first round at least and we're going to start with Patricia bullish from Reuters via telephone.

Hello, Patricia.

Okay.

First question.

Okay.

You seem to have a technical hiccup or is she there, Patricia?

Good morning, gentlemen. I really regret that I cannot be on site today, it's all different and I've got two questions. Now last year for the first time since 2014 you once again generated profits in 2021 will also be positive again. So it helps you now really achieved a turnaround. And then there's a somewhat more general question. And you can still hear me? Yes, we can hear you.

Patricia Uhlig: Good morning, gentlemen. I really regret that I cannot be on site today. It's all different. I've got two questions. Now, last year, for the first time since 2014, you once again generated profits, and 2021 will also be positive again.

Gentlemen.

And I'm I really regret that I cannot be on side today, it's all different and I've got two questions now last year for the first time since you and do 40 and you once again generated profit and 'twenty 'twenty. One will also be positive again. So it helps you know really achieved turnaround.

Christian Sewing: Have you now really achieved a turnaround? A somewhat more general question. Can you still hear me? Yes, we can hear you. Another more general question. Initially, when you announced the transformation plan and the strategy, you said that the individual areas are to contribute similar portions to the revenues of the company, and you're far from that. How will you achieve this goal? How can you strengthen the private and corporate bank business without getting investment bank even stronger and stronger all the time? Well, thank you very much. You're speaking my heart. We also would love to talk to you face-to-face. Maybe we can have that set up again next year. Yes, of course, for 2021, we also intend to generate profit. We've always said that the year of transformation was going to be the year 2020.

Patricia Uhlig: Have you now really achieved a turnaround? A somewhat more general question. Can you still hear me?

And then there's somewhat more general question.

And you can still hear me, yes, we can hear you.

Christian Sewing: Yes, we can hear you.

And then another more general question. Now, initially, when you announced the transformation plan and the strategy you said that the individual areas also contribute to similar portions to the revenues of the company and you're far from that. And how will you achieve this goal and how can you strengthen the private and corporate bank business without getting investment bank even stronger and stronger all the time?

Patricia Uhlig: Another more general question. Initially, when you announced the transformation plan and the strategy, you said that the individual areas are to contribute similar portions to the revenues of the company, and you're far from that. How will you achieve this goal? How can you strengthen the private and corporate bank business without getting investment bank even stronger and stronger all the time? Well, thank you very much. You're speaking my heart. We also would love to talk to you face-to-face. Maybe we can have that set up again next year. Yes, of course, for 2021, we also intend to generate profit. We've always said that the year of transformation was going to be the year 2020.

And then the individual.

Areas also contribute to similar portions to the revenues of the company and you're far from debt and how will you achieve this goal and how can you strengthen the private and corporate bank business without getting investment bank, even stronger and stronger all the time.

Well. Thank you very much. You're speaking my heart. We also would love to talk to you face to face. Maybe we can have that set up again next year. And yes, of course, for 2021 year old who intend to generate profits. We've always said that the year of transformation was going to be the year 2020 and if we then aim for the 8% of post-tax return on tangible equity in 2022. And for us, this means also for 2021 that we want to be profitable.

And we've always said that the year of transformation, where it was going to be the year 'twenty and 'twenty and if we then.

Christian Sewing: If we then aim for the 8% post-tax return on tangible equity in 2022, and for us, this means also for 2021 that we want to be profitable. Now, regarding your second question, we always said that with the transformation, we want to reach a more balanced situation for the bank. I think we succeeded. We now have got four strong businesses, and this is something I consider very important, in the Private Bank and also in the Corporate Bank, we did reach our targets. Targets we had already set ourselves before COVID-19, so that's a particular achievement. The outlook, which we also announced at the Investor Deep Dive one month ago, we can see that in spite of the success in Investment Bank, we will not have a higher risk or capital allocation in the next years into that business.

Aim for the 8% of post tax return on tangible equity in 'twenty and 'twenty two and for US. This means also for 'twenty 'twenty, one day, we want to be profitable.

Now regarding your second question, we always said that with the transformation we want to reach a more balance situation for the bank. I think we succeeded. We now I've got four strong businesses and this is something I consider very important in the private bank and also and the corporate bank, we did reach our targets. Targets we had already set ourselves before COVID-19, and so that's a particular achievement. And the outlook, which we also announced at the Investor Deep dive and one month ago, you can see debt in spite of the success in investment banking, we will not have a higher risk or capital allocation and the next year's into debt business, but our capital allocation will remain balance as initially indicated so it's a well-balanced business with four strong units.

With the transformation we.

We want to reach a more balance situation for the bank I think we succeeded we now I've got four strong businesses and and this is something I consider very important and the private bank and also and the corporate bank. We did reach our targets targets, we had already set ourselves before COVID-19, and so that's a particular.

Achievement and the outlook, which we also announced at the Investor Deep dive and one month ago, you can see debt inspite of the success in investment banking, we will not have a higher risk or capital allocation and the next year's into debt business, but I look at our capital allocation will remain balance as the nuclear.

Frank Hartmann: Our capital allocation will remain balanced as initially indicated. It's a well-balanced business with four strong units. We now continue with Zoom. Thanks, Patricia. Michael Maisch from Handelsblatt. Michael, please. Hello, and good morning. Question number one, what about bonuses? Investment bankers earn significantly more in their division. Will the individuals thus also earn more in compensation? Good morning, Mr. Maisch. Well, we will handle this as usual as we did in the past, which is that the final decision, of course, will be announced together with our compensation report in March. I can tell you, and this is in line with what my colleague James von Moltke kept saying over the last couple of weeks, we have a close eye on this, and we are aware of the general situation.

Indicated so it's a well balanced business with four strong units.

And we now continue with Zoom. Thanks, Patricia. Michael [Meyers from Handelsblatt.] Michael, please. Hello, and good morning. Now, question number one, what about bonuses? Investment bankers earn significantly more in the division. Well, the individuals' do also earn more in compensation. Good morning, Mr [inaudible]. We will handle this as usual as we did in the past. Which is that the final decision, of course, will be announced together with our compensation report in March, but I can tell you and this is in line with what my colleagues James on multi kept saying over the last couple of weeks, we have a close eye on this and we are aware of the general situation on the other, we are facing global competition, of course, we've got to compensate our employees also in a manner that is in line with the competitive situation. Of course, if you're operating on a global scale, you've got to keep your eye on competition. Second question?

Hello, and good morning.

Michael Maisch: Hello, and good morning. Question number one, what about bonuses? Investment bankers earn significantly more in their division. Will the individuals thus also earn more in compensation?

Now question number one what about bonuses and the investment bankers earn significantly more in the division.

Well the individuals' does also earn more in compensation.

Good morning, Mr minds well.

Christian Sewing: Good morning, Mr. Maisch. Well, we will handle this as usual as we did in the past, which is that the final decision, of course, will be announced together with our compensation report in March. I can tell you, and this is in line with what my colleague James von Moltke kept saying over the last couple of weeks, we have a close eye on this, and we are aware of the general situation.

We will we will handle this as usual as we did in the past.

Which is that the final decision of course will be enel.

Announced together with our compensation report in March, but I can tell you and this is in line with what my colleagues James on multi kept saying over the last couple of weeks, we have a close eye on this and we are aware of the general situation on the other and we are facing global competition of course, we've got to.

Christian Sewing: On the other hand, we are facing global competition. Of course, we've got to compensate our employees also in a manner that is in line with the competitive situation. Of course, if you're operating on a global scale, you've got to keep your eye on competitors. Second question. The CRU has shrunk massively. Now, did you intend to fully close it down at some point?

compensate our employees also in a manner that is in line with the competitive situation. Of course, if you're operating on a global scale, you've got to keep your eye on competition. Second question?

Michael Maisch: Second question. The CRU has shrunk massively. Now, did you intend to fully close it down at some point?

The CRU has shrunk massively. Now did you intend to fully close it down at some point? Now, this is James [inaudible]. And I love speaking German, but I think my German is not perfect. Therefore I asked for your understanding that I'm going to ask answer in English. It is performing exactly its function, which is a focused reduction and the assets and risk-weighted assets as well as a reduction of the expenses in that unit. That work is not over a decision as to whether at some point in time, we would reintegrated into the rest of the bank hasn't been made and we don't expect to make a decision of that nature and form for a considerable time again, given the focus that we have on completing the mission. [inaudible] Paul Clark Financial News. Paul Clark, Financial News. On trading revenues and sustainable, given the performance of the investment bank, are you planning any investment of expansion this year?

Yeah. This is James von Moltke.

James von Moltke: Yeah, this is James von Moltke. I love speaking German, but I think my German is not perfect. Therefore, I ask for your understanding that I'm going to answer in English. It is performing exactly its function, which is a focused reduction in the assets and risk-weighted assets, as well as a reduction of the expenses in that unit. That work is not over. A decision as to whether at some point in time we would reintegrate it into the rest of the bank hasn't been made, and we don't expect to make a decision of that nature for a considerable time, again, given the focus that we have on completing the mission.

And I Love speaking German, but I think my German is not perfect. Therefore I asked.

For your understanding that I'm going to ask answer in English and is performing exactly its function, which is a focused reduction and the assets and risk weighted assets as well as a reduction of the expenses and that unit that work is not over a decision as to whether at some point in time, we would re inter.

Great it into the the rest of the bank hasn't been made and we don't expect to make a decision of that nature and form for a considerable time again, given the focus that we have on completing the mission.

<unk> done on and forego some churn on Paul Clark Financial News.

Frank Hartmann: Very good. A question from the chat from Paul Clarke, Financial News.

Paul Clark financial youth and trading revenues and sustainable given the performance of the investment Bank are you planning any investment of expansion this year.

James von Moltke: Paul Clarke, Financial News.

Frank Hartmann: Whether trading revenues are sustainable. Given the performance of the Investment Bank, are you planning any investment or expansion this year?

[inaudible] I'm sorry, and then I switched to English, of course. We said at the Investor deep dive that a good part of the gross we have seen in the investment bank is in our view sustainable. That's by the way exactly what we've seen and what we have seen over the last four weeks, so a very [inaudible] start into January. But we also said that markets will normalize. The most important message is that we are not changing our capital allocation, we have a clear strategy for the investment bank as we have clear strategies for the other three businesses. We hold on to that but if we do more business and revenues in those fields of the investment bank where we decided to focus on, of course, we take it but not with more capital allocation. Thank you [inaudible] Thanks, now it's back to the telephone, Michael [inaudible]. Michael, please.

James von Moltke: Yeah. I think we have.

And he started out of EMEA.

Operator: First of all, you can start in German. You can answer in the language.

Frank Hartmann: First of all, you can start in German. You can answer in the language.

Okay, So and I'm, sorry, and then a switch to English of course.

James von Moltke: Good, yeah. Okay, sorry. I switch to English, of course. We said at the Investor Deep Dive that a good part of the growth we have seen in the investment bank is, in our view, sustainable. That's by the way, exactly what we've seen over the last 4 weeks, so a very promising start into January. We also said that markets will normalize. The most important message is that we are not changing our capital allocation. We have a clear strategy for the investment bank as we have clear strategies for the other three businesses. We hold onto that.

We said at the Investor deep dive for debt.

Good part of the gross we have seen and the investment bank is and all of US sustainable that's by the way exactly what we've seen and what we have seen over the last four weeks, so a very promos and promise of both starter and into January.

But we also said debt markets will normalize and the most important messages that we are not changing our capital allocation, we have a clear strategy for the investment bank as we have clear strategies for the other three business, we hold on to that but if we do more business and revenues in those fields of the investment bank.

James von Moltke: If we do more business and revenues in those fields of the investment bank where we decided to focus on, of course, we take it, but not with more capital allocation.

And we decided to focus on of course, we take it but not with more capital allocation.

Thank you yet skus moving out of telephone and my thanks, and now it's back to the telephone Mike as drivers of Deutsche and site micro please.

Frank Hartmann: Thank you. Now we go back to the telephone. Mike-

Frank Hartmann: Thanks. Now it's back to the telephone. Meike Schreiber, Süddeutsche Zeitung. Meike, please.

Good morning to everybody. Can you hear me? Yes, we can. I've got two questions. Number one. It's also about the CRU. Now, how exactly has been the effect on CT1 in 2019, but also in 2020. And then I've got a question on the equity target of 8%. Now, the bank is now more dependent on investment banking. Which is a more volatile and ultimate risky business. Now what are the expectations? Namely what kind of [ROT] is the market that expect from you with this somewhat more risky business. Is the market satisfied with 8%? The capital release unit more or less has hit the expectations we had in terms of its and its capital results. In fact, it is a little bit ahead of plan.

Meike Schreiber: Good morning.

Meike Schreiber: Good morning to everybody. Can you hear me?

James von Moltke: Yes, we can.

I've got two questions number one.

Operator: Step five.

Meike Schreiber: I've got two questions. Number one, it's also about the CRU. Now, how exactly has been the effect on CET1 in 2019, but also in 2020? And then I've got a question on the equity target of 8%. Now, the bank is now more dependent on investment banking, which is a more volatile and also more risky business. Now, what are the expectations? Namely, what kind of ROTE is the market going to expect from you with this somewhat more risky business? Is the market satisfied with 8%?

It's also about the C. R U.

And now.

How exactly.

It has been the effect on <unk>.

Two one and 2019, but also in 'twenty and 'twenty.

And then I've got a question on the equity target of 8% now the bank.

Is now more depend on investment banking.

Which is a more volatile and ultimate risky business now what are the expectations.

Right.

Namely what what kind of are.

<unk> is the market that <unk> expect from you with this somewhat more risky business is the market satisfied with 8%.

James von Moltke: I'll take those questions. The Capital Release Unit more or less has hit the expectations we had in terms of its capital results. In fact, it is a little bit ahead of plan. The de-risking costs have been less than we initially estimated when we launched our repositioning in July 2019. The net impact of reduction in risk-weighted assets, and the losses that have been recorded in the Capital Release Unit at this point, is slightly positive. As it relates to the... Oh, I'm sorry. I didn't hear you.

And the capital release unit more or less has has hit the expectations. We had in terms of its and its capital results and fact is a little bit ahead of plan.

The derisking costs have been less than we initially estimated when we launched our repositioning in July of 2019. And so the net impact of reduction in risk-weighted assets and the losses and that had been recorded and the capital and using that unit at this point is slightly positive. As it relates to the, I'm, sorry, that we've been working through the release. And the second question is related to do we with a different or with different with our investment banking strength, will our investors expect a different return. Look I think we've given targets for the [ROTE] for the businesses for 2022. I guess the first point I'd make is you know our history doesn't end in 2022, we see a future and further and positive developments in the businesses after that time over which also on the portfolio can evolve. I think the second thing I'd say is that our goal is to get the return for the whole group above our cost of equity. Of course, the relative mix of business within that will impact our cost of equity, but we look at it very much on a portfolio basis, as Christian referred to and at the outset.

And so the net impact of reduction in risk weighted assets.

And the losses and that had been recorded and the capital and using that unit at this point.

And is slightly positive.

As it relates to the the and I'm.

And I'm, sorry, and the insight.

Operator: Translation side from the test. This is.

Christian Sewing: Translation side from the test. This is.

On the debt is well within what period and that we've been working through the through the release and the second question is related to do we with a different.

Meike Schreiber: Within what period?

James von Moltke: That we've been working through the release. The second question is related to do we-

Operator: Mm.

James von Moltke: with the different or with different with the investment banking strengths, will investors expect a different return? Look, I think we've given targets for the ROTE for the businesses for 2022. I guess the first point I'd make is, you know, history doesn't end in 2022. We see a future and further positive developments in the businesses after that time, over which also the portfolio can evolve. I think the second thing I'd say is that our goal is to get the return for the whole group above our cost of equity. Of course, the relative mix of business within that will impact our cost of equity, but we look at it very much on a portfolio basis, as Christian referred to at the outset.

Or with different with our investment banking strength, we invest.

Investors expect a different return look I think the we've given targets for the <unk> for the businesses for 2022, I guess the first point I'd make is you know our history doesn't end in 2022, we see a future and.

And further and positive developments and the businesses after that time over which also on the portfolio and can evolve I think the second thing I'd say is that the our goal is to is to get the return for the whole group above our cost of equity of course, the relative mix of business within that will impact our cost of equity, but we look at it very.

on a portfolio basis, as Christian referred to and at the outset.

[inaudible] Thanks a lot Mike and we now continue with Zoom Steve and Aaron's from Bloomberg, please. Hi, [inaudible]. Yeah. Hi, can you hear me? Yes, we can. I've got two questions. Number one is about the adjusted cost target for this year. In December it was announced at $18.5 billion, if I remember that value didn't repeat this time and you also said that this year is going to be the year of investing. Does this mean that this target announced in December is somewhat in doubt or does this still apply? This was number one. And second question about leveraged loans. Now, you talked to the ECB about how to deal with that business. And if I got you right. This did not result in any restrictions of that business, but is there the risk that in the future you will have to limit this business on the request of the regulators or can you exclude this possibility? Thank you.

Frank Hartmann: Thanks a lot, Meike.

Thanks, a lot Mike and we now continue with zoom, Steve and Aaron's from Bloomberg. Please.

Frank Hartmann: Thanks a lot, Meike. We now continue with Zoom, Steven Arons from Bloomberg, please.

Hi could you Michele Yeah, Hi can you hear me, yes again.

Steven Arons: Hi. Can you hear me? Yeah.

Frank Hartmann: Hi. Can you hear me? Yes, we can.

Okay.

Yeah.

I've got two questions.

Steven Arons: I've got two questions. Number one is about the adjusted cost target for this year. In December, it was announced at EUR 18.5 billion, if I remember that value. You didn't repeat this this time. You also said that this year is going to be the year of investing. Does this mean that this target announced in December is somewhat in doubt, or does this still apply? That was number one. Second question about leveraged loans. Now, you talked to the ECB about how to deal with that business. If I got you right, this did not result in any restrictions of that business. But is there the risk that in the future you will have to limit this business on the request of the regulators, or can you exclude this possibility? Thank you.

Number one is about the adjusted cost target for this year.

In December it was announced at $18 5 billion, if I remember that value didn't repeat. This this time and you also said that this year is going to be day Europe investing that does this mean that this target announced in December is somewhat in doubt or does this still apply but it was number one and second question about leveraged loans.

No you you talked to the ECB about how to deal with debt business.

And if I got you right. This did not result in any restrictions of that business, but is there the risk that in the future you will have to limit this business on the request of the regulators or can you exclude this possibility? Thank you.

James von Moltke: The number we gave of 18.5 for 2021 was really a plan number. We don't view that as a hard and fast target, but of course, we'll work to achieve that or exceed it as in do better. What we really wanted to communicate with the discussion about the 2021 path is that it's nonlinear. In other words, of a distance to travel between 2020 and 2022 of EUR 2.8 billion, we would not see half of that achieved in 2021 because we are making investments, particularly in technology, that help to drive the 2021 expenses. But there's no, you know, indication that we're trying to communicate that we're not confident of hitting our results for 2021.

The number we gave of 18 and a half for 2021 was really a plan number and we don't view that as a hard and fast target, but of course, we'll work to achieve that or exceed it and do better. What we really wanted to communicate with the with a discussion about the '21 path is and it's non-linear in other words of a distance to travel between 2020 and 2020 of $2.8 billion, we would not see half of that achieved in '21 because we are making investments, particularly in technology that helped to drive the '21 expenses. But there's no indication that we're trying to communicate that and where we're not confident and have been hitting our results for '21. [inaudible] And then the question about leveraged loans. Yes. This is a business that is important for us.

To travel between 'twenty, and 'twenty and 'twenty and 'twenty two of $2 8 billion, we would not see half of that achieved in 'twenty. One because we are making investments, particularly in technology and that helped to drive the 21 expenses and but there's no indication that that we're trying to communicate that and where we're not confident and have been hitting our <unk>.

Results for for 'twenty one.

On to their saga day, our leverage and then the question about leveraged loans. Yes. This is a business that is important for us and.

Christian Sewing: to the Frage, the leveraged-

Stuart Lewis: The question about leveraged loans. Yes, this is a business that is important for us, and we've been running this business very successfully for more than 20 years, and we've been in close touch with ECB. We feel that this is a very productive and constructive exchange. I think in the past we have demonstrated, and especially during the last 12 months, what active risk management can do and how we managed our book. Here we are really leading, as we are with all of the impairments leading in the industry. The fact that we don't have anything in the underlying pipeline anymore, which we entered into before COVID, already shows how good we're managing it.

And we've been running this business very successfully for more than 20 years, and we win and close in touch with the ECB. And we feel that this is a very productive and constructive exchange. And I think in the past, we have demonstrated and especially during the last 12 months what active risk management can do and how we managed our book. And here, we are really leading as we are with all of the impairments and leading in the industry and the fact that we don't have anything in the underlying pipeline anymore, which we entered into before COVID already shows how good we are managing it. And so and we are waiting and close exchange and I'm optimistic that we will be able to continue running our business of course in line with the requirements of the regulators. [inaudible]

Can do and how we managed our book and here, we are really leading as we are with all of the impairments and leading in the industry and the fact that we don't have anything and the underlying pipeline anymore, which we entered into before Covid already shows how good we are managing it and so and we are waiting and close exchange and I'm optimistic that we will.

Stuart Lewis: We have been in close exchange, and I'm optimistic that here we will be able to continue running our business, of course in line with the requirements of the regulators.

Be able to continue running our business of course in line with the requirements of the regulators soon is a bit on.

Frank Hartmann: To Isabella.

Thank you, Stephen, Isabella [inaudible] Isabella, can you hear us? Thank you very much for the opportunity. I have two questions. The first question is on Italy, I mean imagine you're following the latest news in Italy. Could you comment on margin that IDB and ask them for them and new government and how important is Italy for your European strategy? And my second question is on capital buffers. Would you be ready to use capital buffers if needed or is the stigma too big? Thank you. Isabella, I hope you're all well and good to talk to you. Now with regard to the importance of Italy. It is a critical and important market for us. It's one of the key markets outside Germany, not only for the retail banking but also for our corporate banking also for our investment bank. So we're very proud to be in Italy. With regard to the political developments that is for us not to comment. I can only tell you that from a personal and point of view, I really do respect our Mario Draghi. I'm sure he is in this regard an excellent choice. And hence, I personally and I think Deutsche Bank wish him all the best in his task ahead.

Frank Hartmann: Thank you, Steven. Isabella Bufacchi from Il Sole 24 Ore. Isabella, can you hear us?

Okay.

Isabella Bufacchi: Yes. Good morning. Thank you very much for the opportunity. I have two questions. The first question is on Italy. I imagine you're following the latest news in Italy. Could you comment on Mario Draghi being asked to form a new government, and how important is Italy for your European strategy? My second question is on capital buffers. Would you be ready to use capital buffers if needed, or is the stigma too big? Thank you.

Thank you very much for the opportunity and good.

Since the first question is on Italy, I mean imagine your Halloween day latest news in Italy could you comment on margin that IDB and ask them for them and new government and how important is Italy for your European strategy and my second question is on capital buffers.

And you'll be ready to use capital buffers, if needed or is the stigma two big thank you.

Isabella and I hope, you're all well and good to talk to you.

Christian Sewing: Isabella, I hope you are well, and good to talk to you. Now, with regard to the importance of Italy, it is a critical and important market for us. It's one of the key markets outside Germany, not only for the retail banking, but also for our corporate banking, also for our investment bank. We're very proud to be in Italy. With regard to the political developments, that is for us not to comment. I can only tell you that, from a personal point of view, I really do respect Mario Draghi. I'm sure he is, in this regard, an excellent choice. And hence I personally, and I think whole Deutsche Bank, wish him all the best in his task ahead.

Now with regard to the importance of Italy. It is a critical and important market for us. It's one of the key markets outside Germany, not only for the retail banking, but also for our corporate banking also for our investment bank. So we're very proud to be in Italy.

With regard to the political developments that is for us.

Not to comment I can only tell you debt from a personal and point of view.

I really do respect our Mario Draghi. I'm sure he is in this regard an excellent choice. And hence, I personally and I think Deutsche Bank wish him all the best in his task ahead.

And hence I I personally and I think Paul Deutsche Bank and wish him all the best. And his task ahead.

And his task ahead.

And as to the capital buffers, we've articulated a minimum level of greater than 12.5% that we wish to travel at. But to your question about would we be willing to go into the buffers. I draw your attention to our announcement back in April when we told the market that we would be prepared to modestly and temporarily drop below that threshold. As we found ourselves at that time and in a crisis period, and we wanted to be able to support our clients through that crisis time. And I think that was consistent also with the direction, the regulatory bodies around the world that gave the banking industry. In the end, we did not fall below the 12.5% level and today, we see nothing in the economic outlook that would suggest that's a possibility. So we will continue to manage to the targets we had set. But again I wanted to draw your attention to the point in time, where we indicated quite clearly we'd be willing to do so to support clients. Thank you. Thank you, Isabella, and now [inaudible].

James von Moltke: As for the capital buffers, we've articulated a minimum level of greater than 12.5% that we wish to travel at. To your question about would we be willing to go into the buffers, I draw your attention to our announcement back in April, where we told the market that we would be prepared to modestly and temporarily drop below that threshold, as we found ourselves at that time in a crisis period, and we wanted to be able to support our clients through that crisis time. I think that was consistent also with the direction that regulatory bodies around the world gave the banking industry.

But to your question about would we be willing to go into the buffers.

And I draw your attention to our announcement back in April where we were we told the market that we would be prepared to modestly and temporarily drop below that threshold and as we found ourselves at that time and in a crisis period, and we wanted to be able to support our clients through that crisis time, and I think that was consistent also with the direction.

Inventory bodies around the world that gave the banking industry.

James von Moltke: In the end, we did not fall below the 12.5% level, and today we see nothing in the economic outlook that would suggest that's a possibility. We'll continue to manage to the targets we've set. Again, I wanted to draw your attention to the point in time where we indicated quite clearly we'd be willing to do so to support clients.

And the and we did not fall below the 12, 5% level and today, we see no nothing and the economic outlook that would suggest that's a possibility. So we will continue to manage and to the targets. We had set but again I wanted to draw your attention to the point and time, where we indicated quite clearly we'd be willing to do so to support clients.

Thank you thank.

Isabella Bufacchi: Thank you.

Thank you Isabella and now all of Storbeck of Zoom beta.

Frank Hartmann: Thank you, Isabella. Now Olaf Storbeck of Zoom, bitte.

And that stall back on zoom. Hello, can you hear me? Your questions, please. First question is very fast. One target, which was not mentioned today and which hasn't dimension for all the time is the reduction of head count to the 74,000 by 2022 is still applicable or if it is no longer applicable? I believe our most important objective is to bring down our costs to the $16.7 billion and in order to do it is it will, unfortunately, be necessary to also further reduce headcount. We defined and set out on a clear path Interjectory and off we go and I think you can also see the brokers that was made in this respect we are below 85,000 people tens of headcount. To give out a precise number it is always difficult as you know because we are also talking a lot about internalization and especially in technology. But the basis, but the basic path we set out on is absolutely valid. There's not really a confirmation is it that's not really and confirmation. I think that is a confirmation. Saying that the cost targets were not and at 17 billion, but 16.7 this is our main target and unfortunately. And it will also have an effect on the headcount, but I think we are really responsible and going about this and I think I've said everything that has to be said on that matter.

Frank Hartmann: Olaf Storbeck on Zoom. Hello, can you hear me? Your questions, please. First question is very fast. One target which was not mentioned today and which hasn't been mentioned for a time is the reduction of headcount to 74,000 by 2022. Is this still applicable or is this no longer applicable?

Olaf Storbeck: Olaf Storbeck on Zoom. Hello, can you hear me? Your questions, please. First question is very fast. One target which was not mentioned today and which hasn't been mentioned for a time is the reduction of headcount to 74,000 by 2022. Is this still applicable or is this no longer applicable?

I look and you hear me.

Your questions. Please.

First question is very fast.

One target, which was not mentioned today and which hasn't dimension for all the time.

Is the.

A reduction of head count to the.

74000 by 'twenty and 'twenty, two is still applicable or if there is no longer applicable.

Mr. Stomach I believe on most important objective is to bring down our costs too.

Christian Sewing: Mr. Storbeck, I believe our most important objective is to bring down our costs to the EUR 16.7 billion. In order to do this, it will unfortunately be necessary to also further reduce headcount. We defined and set out on a clear path and trajectory a year and a half ago, and I think you can also see the progress that was made. In this respect, we are below 85,000 people in terms of headcount. To give out a precise number, it's always difficult, you know, because we're also talking a lot about internalization, especially in technology. But the basic path we set out on is absolutely valid. That's not really a confirmation, is it? That's not really a confirmation.

The $16 7 billion and in order to do it is it will unfortunately be necessary to also further reduced head count.

We defined and set out on a clear path Interjectory and off we go and I think you can also see the brokers that was made and disrespect. We are below 85000 people tens of head count and.

To give out a precise number its always difficult as you know because we are also talking a lot about internalization and especially in technology, but the basis, but the basic path. We set out on is absolutely valid.

There's not really a confirmation is it that's not really and confirmation I think that is a confirmation and.

Christian Sewing: I think that is a confirmation saying that the cost targets will not end at EUR 17 billion, but EUR 16.7 billion. This is our main target. Unfortunately, it will also have an effect on the headcount. I think we are really responsible in going about this, and I think I said everything that is to be said on that matter.

Saying that the cost targets were not and at 17 billion, but 16 plants and this is our main target and unfortunately.

And it will also have an effect on the headcount, but I think we are really responsible and going about this and I think I've said everything that has to be said on that matter.

The second question on the CRU. Actually, you already achieved the RWA targets for 2022 with $30 billion approximately. The targets that you lowered in December. Why do you still need the capital release unit why don't you dissolve it and what happens if the losses that will be generated over the next two years will be generated above and beyond 2022? And first of all, we have about 11 billion remaining of credit and market risk onto the way in the capital release unit and that's something we want to continue to work down overtime again to free up the capital that is consuming. We also talked about the 72 billion of leverage exposure that remains and that unit. That work and still ahead of us as well and. Including the transfer of the prime finance business that we expect to complete into this year.

Olaf Storbeck: Second question on the CRU. Actually, you already achieved the RWA targets for 2022 with EUR 30 billion, approximately, the targets that you lowered in December. Why do you still need a capital release unit? Why don't you dissolve it? What happens if the losses that will be generated over the next two years will be generated above and beyond 2022?

Actually you already achieved the RW a targets for 2022 with $30 billion approximately the targets that you lowered and December why do you still need the capital release unit why don't you dissolve it and what happens if the losses that will be generated over the next two.

Two years will be generated above and beyond 2022.

And first of all we have about 11 billion remaining of credit and market risk onto the way and the capital release unit and that's something we want to continue to work down over time again to free up the capital that is consuming we also talked about the 72 billion of leverage exposure and that remains and that unit that work and still ahead of us as well and.

James von Moltke: First of all, we have about EUR 11 billion remaining of credit and market risk RWA in the Capital Release Unit, and that's something we want to continue to work down over time, again, to free up the capital that it's consuming. We also talked about the EUR 72 billion of leverage exposure that remains in that unit. That work is still ahead of us as well, including the transfer of the prime finance business that we expect to complete later this year. Lastly, as I responded earlier, we are focused on the expenses in that unit, whether they're direct expenses or indirect expenses, and keeping it as a specialized organization allows us to identify, manage, focus on those expenses and also make clear to investors, you know, exactly how the performance of that unit is impacting the group as a whole.

Including the transfer of the Prime finance business that we expect to complete this year and <unk>.

Lastly, as I responded earlier, we are focused on the expenses in that unit, whether they're direct expenses or indirect expenses. And keeping it as a specialized organization allows us to identify manage focus on those expenses and also make clear to investors you know exactly how the performance of that unit is impacting the group as a whole. [inaudible] Thank you very much for your two and a half questions. This gets us to a chat question of John Philip La Combe from ASP. The renewed strong dominance of investment banking is reflected in your results for 2020. How do you want to reduce your dependency on volatile investment banking and strengthen the stable market stable businesses?

You know exactly how the performance of that unit is impacting the group as a whole.

Duncan put on its final plot and all of US. Thank you very much for your two and a half questions or left this gets us to a chat question of John Philip La Combe from a S. P.

Frank Hartmann: Thank you very much for your 2.5 questions, Olaf. This gets us to a chat question of Jean-Philippe Lacour from AFP. The renewed strong dominance of investment banking is reflected in your results for 2020. How do you want to reduce your dependency on volatile investment banking and strengthen the stable markets, the stable businesses? Well, I think the question also comes back to one of the questions that we just answered. Let me start by saying that the businesses, this is the private bank, the corporate bank and asset management, again, achieved their targets in 2020, in particular when it comes to the top line. This is an outstanding performance, I mean, against the backdrop that interest rates even deteriorated more than we expected. This is why we're completely on plan when it comes to those businesses.

And we renewed strong dominance of investment banking is reflected in your.

Results for 'twenty and 'twenty, how do you want to reduce your dependency on volatile investment banking and strengthen the stable market stable businesses.

Well, I think the question also comes back to one of the questions that were just answered. Let me start by saying that the businesses. This is the private bank, corporate bank and asset management again achieved their targets in 2020 in particular when it comes to the top line and this is an outstanding performance. Against the backdrop that interest rates, even deteriorated more than we expected. So this is why we are completely on plan when it comes to those businesses and when it comes to the investment bank. Let me reiterate again that we increased business, whatever we said one and a half years ago that this is our core business. And we just turned in better results and those businesses that we defined as the core of the investment bank.

Christian Sewing: Well, I think the question also comes back to one of the questions that we just answered. Let me start by saying that the businesses, this is the private bank, the corporate bank and asset management, again, achieved their targets in 2020, in particular when it comes to the top line. This is an outstanding performance, I mean, against the backdrop that interest rates even deteriorated more than we expected. This is why we're completely on plan when it comes to those businesses.

On the top line and this is an outstanding performance.

And.

Against the backdrop debt interest rates, even deteriorated more than we expected.

So this.

And this is why we are completely on plan when it comes to those businesses and when it comes to the investment Bank. Let me reiterate again that we increased business, whether we said one and a half years ago that this is our core business.

Christian Sewing: Now, when it comes to the Investment Bank, let me reiterate again that we increased business wherever we said one and a half years ago that this is our core business. We just turned in better results in those businesses that we defined as the core of the Investment Bank. I think this shows the relevance that we have. It also shows how many customers returned to us. Of course, the rating activity of Fitch and Moody's is helpful, no doubt about it. This is the momentum that we are just accepting. It has nothing to do with a change of strategy. I think we made it very clear to Investor Day that a lion's share of the revenues that we turned in 2020 are considered sustainable. We also see this in the daily business, as can be seen in January already.

And we just turned in better results and those businesses that we defined as the core of the investment bank.

And I think this shows the relevance that we have. It also shows how many customers returned to us and of course, the rating activity of Fitch and Moody's helpful. No doubt about it but this is day momentum that we are just accepting and there's nothing to do with a change of strategy. And I think we made it very clear at Investor day the lion's share of the revenues that'd be tad and into energetic are considered sustainable and be also state is and the daily business as can be seen in January already. Now we go back to zoom I hope, we have Johan Bender from DPA present. Hello. Mr Bender. And perhaps I have another chat question from John Philip [inaudible] wants to have employers vaccinated against COVID-19. Are you willing to do the same for your bank?

And the lion's share of the revenues that'd be tad and into energetic are considered sustainable and be also state is and the daily business as can be seen in January already now.

Frank Hartmann: Now we go back to Zoom. I hope we have Jörn Bender from dpa present. Hello? Mr. Bender? I, well, perhaps I have another chat question from Jean-Philippe Lacour, AFP. The head of AXA wants to have employees vaccinated against COVID-19. Are you willing to do the same for your bank? Well, of course, we all want to be vaccinated as fast as possible. But one thing is very clear, Deutsche Bank is indebted to society. We are in the midst of society, so we stick to the framework and to the schedule that was properly set by the government. There is no extra course or path for Deutsche Bank. We are cooperating with the government, and this is our first duty. Thank you very much. Next question from Tim Kanning from FAZ on Zoom again. Good morning, gentlemen. Can you hear me?

Go back to zoom I hope, we have Johan Bender from DPA present.

No.

Mr Bender.

And perhaps I have another channel question from John Philip and Alcoa AFP.

Are you ahead of Axa <unk>.

Ones to have and.

Employers vaccinated against COVID-19 are you willing to do the same for your bank.

Yeah.

Well, of course, we all want to be vaccinated as fast as possible, but one thing is very clear, Deutsche Bank is indebted to society. We are in the midst of society. So we stick to the framework and to the schedule that was properly set by the government. There is no extra causal path for Deutsche Bank. We are cooperating with the government and this is our first duty. Thank you very much. Next question from Tim [inaudible] on zoom again. Good morning, gentlemen, can you hear me? Well, we can't see you. We're happy to hear you. Well, you know me. Okay, you are very appreciative of the government and how they help you during the Corona crisis. Now I would like to know a bit more about it. How the Deutsche Bank profit from that? How did you benefit at this gives you a competitive edge over foreign banks that you talked about 12 billion euros that you facilitated in terms of Corona aids.

Christian Sewing: Well, of course, we all want to be vaccinated as fast as possible. But one thing is very clear, Deutsche Bank is indebted to society. We are in the midst of society, so we stick to the framework and to the schedule that was properly set by the government. There is no extra course or path for Deutsche Bank. We are cooperating with the government, and this is our first duty.

Be vaccinated as fast as possible, but one thing is very clear Deutsche Bank is indebted to society. We are in the midst of society. So we stick to the framework and to the schedule that was properly said by the government. There is no extra call so powerful Deutsche Bank.

We are cooperating with the government and this is our first duty.

Thank you very much.

Frank Hartmann: Thank you very much. Next question from Tim Kanning from FAZ on Zoom again.

Next question from Tim coming from F. A debt on zoom again.

Good morning, gentlemen, can you hear me.

Tim Kanning: Good morning, gentlemen. Can you hear me?

Well, we can see it.

Frank Hartmann: Well, we can't see you. Well, happy to hear you. Well, you know me, you know. Okay. You are very appreciative of the government and how they helped you during the corona crisis. Now, I would like to know a bit more about this. How did Deutsche Bank profit from that? How did you benefit? Did this give you a competitive edge over foreign banks that you talked about EUR 12 billion that you facilitated in terms of corona aids? Does this also include funds of Deutsche Bank? And how much did you earn by processing or extending those credits? And one program was also the moratoriums on the mortgage loans. I would also interested to know how if you could give us a number for the interest rate losses that you generated on this.

Christian Sewing: Well, we can't see you.

We're happy to here well you know me you know.

Tim Kanning: Well, happy to hear you. Well, you know me, you know. Okay. You are very appreciative of the government and how they helped you during the corona crisis. Now, I would like to know a bit more about this. How did Deutsche Bank profit from that? How did you benefit? Did this give you a competitive edge over foreign banks that you talked about EUR 12 billion that you facilitated in terms of corona aids? Does this also include funds of Deutsche Bank? And how much did you earn by processing or extending those credits? And one program was also the moratoriums on the mortgage loans. I would also interested to know how if you could give us a number for the interest rate losses that you generated on this.

Okay you are.

Very appreciative of the government and how they help you during the Corona crisis now I would like to know a bit more balance is how the Deutsche Bank profit from that how did you benefit at this gives you a competitive edge over and foreign banks are there Jim you talked about 12 10.

And euros that you facilitated in terms of Corona AIDS.

Yeah.

It is this is all of that is also include funds of Deutsche Bank? And how much did you earn by processing or extending those credits? And one thing. One program was also the moratoriums on the mortgage loans. I would also be interested to know how if you could give us a number for the interest rate losses that you generated on this. Well, first of all, we are very appreciative of the government because we believe that the determined action in March and April was correct and needed in order to keep the German industry as stable as possible and everyone benefited of this. The economy, society et cetera, because most of the companies actually came into liquidity troubles by no fault of themselves. And it had to be breached. So we believe that this was exactly the right program and bands. And of course, in spite of the major support coming from government and central banks et cetera had to weather headwinds. The Corona crisis did something which we do not like actually, namely bringing down the interstate really first and of course, we have higher loan loss provisions. So you have to take very differentially fewer things, but basically speaking all we can say is that at the start of the pandemic, especially at the start of the pandemic. These were exactly the right decisions that were taken.

And how much did you and by processing or extending those credits and one thing. One program was also the moratoriums on the mortgage loans.

I would also interested to know how if you could give us an and number four the interest rate losses that you generated on this.

Well first of all we are very appreciative of the government because we believe that the determined action are in March and April was correct and needed in order to keep the German industry as stable as possible and everyone benefited us states and the economy.

Christian Sewing: Well, first of all, we were very appreciative of the government because we believe that the determined action in March and April was correct and needed in order to keep the German industry as stable as possible. Everyone benefited from this, the economy, society, et cetera, because most of the companies actually came into liquidity troubles by no fault of themselves, you know, and it had to be bridged. We believe that this was exactly the right program. As banks, and of course, in spite of the major support coming from government, especially banks, et cetera, had to weather headwinds. The corona crisis did something which we do not like, actually, namely bringing down the interest rates really further. Of course, we have higher loan loss provisions. You have to take a very differentiated view of things.

Society et cetera, because most of the company actually came into liquidity troubles and by no fault of themselves and it had to be breached. So we believe that this was exactly the right program and bands.

And of course in spite of the major support coming from government and central banks et cetera.

Weather headwinds.

And the Corona crisis did something which we do not like actually, namely bringing down the Interstate really first and of course, we have higher loan loss provisions. So you have to take very differentially fewer things, but basically speaking all we can say is debt are at the start of the pandemic, especially at the start of the pandemic. This was exactly the right decisions.

Christian Sewing: Basically speaking, all we can say is that, especially at the start of the pandemic, this was exactly the right decisions that were taken.

And were taken.

Christian Sewing: It gives us the possibility to get out of this pandemic in a way that we will be able to weather the challenges of the future. When it comes to the EUR 12 billion, James von Moltke, over to you.

And it gives us the possibility to get out of this pandemic in a way that we will be able to weather the challenges of the future. When it comes through and 12 billion James, over to you. Net present value of the interest rate impact of Moratoria. So first of all, it is accounted as a net present value difference once the payments are rescheduled over a longer period of time. I don't have an up to date number for the full year actually for you because the number is very small and so on the last number that I remember was and the second quarter and it was either high single digits or very low double digits in terms of again net present value difference. We can certainly follow up on that but it was not a significant number in the year. [inaudible]. And with regard to the 12 billion and that you mentioned this is indeed now has to be seen in connection and cooperation with KFW, but you always know that part of this will stay with the House Bank, you know. I can't give you the split up exactly but the 12 billion is what comes out of the cooperation with KFW. Right. So the next one via telephone and is [inaudible] from finance business and then via Zoom, we will have [inaudible].

Net present value of the interest rate impact of Moratoria.

James von Moltke: Net present value of the interest rate impact of moratoria. First of all, it is accounted as a net present value difference once the payments are rescheduled over a longer period of time. I don't have an up-to-date number for the full year actually for you because the number is very small. The last number that I remember was in Q2, and it was either high single digits or very low double digits in terms of, again, net present value difference. We can certainly follow up on that, but it was not a significant number in the year.

So first of all it is and accounted as a net present value difference once the payments and rescheduled over over a longer period of time I don't have an up to date number for the full year actually for you because the number is very small and so on the last number that I remember was and the second quarter and it was either high single digits or very low double.

Just in terms of again net present value difference, we can certainly follow up on that but it was not a significant number and the year.

And when they are coming.

Frank Hartmann: Mr. Kanning, with regard to the EUR 12 billion that you mentioned, this is indeed now has to be seen in connection or in cooperation with KfW. You always know that part of this will stay with your house bank. You know, I can't give you the split up exactly, but the EUR 12 billion is what comes out of cooperation with KfW. Right. The next one via telephone is Archibald Preuschat from FinanzBusiness, and then via Zoom, we will have Bernd Neubacher from Börsen-Zeitung. First of all, Archibald Preuschat from FinanzBusiness.

Mr <unk> and Mr accounting with regard to the 12 failure and that you mentioned this is indeed.

now has to be seen in connection and cooperation with KFW, but you always know that part of this will stay with the House Bank, you know. I can't give you the split up exactly but the 12 billion is what comes out of the cooperation with KFW. Right. So the next one via telephone and is [inaudible]

from finance business and then via Zoom, we will have [inaudible].

Good morning, gentlemen, and thanks a lot. I've got two questions. You didn't talk too much about the risks that you see for '21 and therefore my question, which risks do you expect in '21 and do you think debt the existing loan loss provisions sufficiently cover those risks? And the second question for you Mr. Sewing, you emphasized that it's important to pay competitive sales and remuneration and as far as I know that the 650 employees at your call centers in [inaudible] Berlin are still in labor dispute. Which is not has not been finalized yet and what do you want to do to pay competitive salaries there and strength and digitalization at the same time?

Archibald Preuschat: Good morning, gentlemen, and thanks a lot. I've got two questions. Mr. Sewing, Mr. von Moltke, you didn't talk too much about the risks that you see for 2021. Therefore, my question, which risks do you expect in 2021? And do you think that the existing loan loss provisions sufficiently cover those risks? Second question for you, Mr. Sewing, you emphasized that it's important to pay competitive salaries and remuneration. As far as I know, the 650 employees at your call centers in Essen and Berlin are still in a labor dispute, which has not been finalized yet. What do you want to do to pay competitive salaries there and strengthen digitalization at the same time?

And you didn't talk too much about the risks that you see for 'twenty 'twenty, one and therefore my question, which risks do you expect in 'twenty 'twenty, one and do you think debt the existing loan loss provisions sufficiently cover those risks and second question for you and Mr. Saving.

You emphasized that it's important to pay competitive sales and remuneration and as far as I know that the 600 <unk>.

50 employees, and you call tennis and isn't and Berlin are still and labor dispute.

And is not has not been finalized yet and what do you want to do to pay competitive salaries, there and strength and digitalization at the same time.

We feel actually cautiously optimistic about where things stand at the moment. We've talked about $1.8 billion and being the CLP and the credit loss provision for '20 and then we expect that to go down in '21. We've talked about a $4.8 billion allowance for loan losses on the balance sheet, which represents about 111 basis points of loans. And based on what we see in the outlook, we think those reserves are appropriate and as they must be under IFR nine under the accounting standard.

James von Moltke: We feel actually cautiously optimistic about where things stand at the moment. We've talked about EUR 1.8 billion being the CLP, the credit loss provision, for 2020, and that we expect that to go down in 2021. We've talked about a EUR 4.8 billion allowance for loan losses on the balance sheet, which represents about 111 basis points of loans. Based on what we see in the outlook, we think those reserves are appropriate as they must be under IFRS 9, under the accounting standard. I think the most recent view we have now one month into the year is actually sort of a little bit more cautiously optimistic on the risk outlook than we were, if you like, as of 31 December 2021.

And basis points of loans.

And based on what we see in the outlook and we think those reserves are appropriate and as they must be under ifr nine under the accounting standard and.

And I think the most recent view we have now one month into the year is actually sort of a little bit more cautiously optimistic on the risk outlook than we were if you like [inaudible]. We, of course, need to be very cautious in this environment. Also of the other risks that we need to manage in the remaining Corona period, whether that be market risks and of course operational risks and then as it relates to credit risk, we feel very comfortable with where we stood at the end of the year. [inaudible]. And your second question. Of course, it happens that you have different types of interest and also different perspectives on wage negotiations. We are firmly convinced that we have made a fair and relevant offer and I hope we can now also reach an agreement because and the final analysis strike always turns into a disadvantage for customers. And that's something we want to overcome as quickly as possible and we're working on this we just made sure that in the meantime, we can offer our services through external service providers and once again I think the bank provided a very fair offer.

If you like stitch chalk.

And in science and construct them, we of course need to be very cautious in this and this environment also of the other risks that we need to manage and.

James von Moltke: We, of course, need to be very cautious in this environment, also of the other risks that we need to manage, in the remaining Corona period, whether that be market risks or of course, operational risks. As it relates to credit risk, we feel very comfortable with where we stood at the end of the year.

And the remaining Corona period, whether that be market risks and of course operational risks and then as it relates to credit risk, we feel very comfortable with where we stood at the end of the year.

Yeah on Sierra fight and saga.

Christian Sewing: Your second question. Of course, it happens that you have different types of interests and also different perspectives on wage negotiations. We are firmly convinced that we have made a fair and relevant offer, and I hope we can now also reach an agreement because in the final analysis, a strike always turns into a disadvantage for customers. That's something we want to overcome as quickly as possible. We're working on this. We just made sure that in the meantime, we can offer our service through external service providers. Once again, I think the bank provided a very fair offer. Thank you very much, Mr. Preuschat. We now continue with a question. Oh, once again, it's over Zoom. Yes. Bernd Neubacher now. Mr. Neubacher.

And your second question.

Of course, it happens that you have different types of interest and also different perspectives on wage negotiations we are firmly convinced.

That we have made a fair.

And relevant offer and I hope we can now also reached an agreement because and the final analysis.

Strike.

Always turns into a disadvantage for customers and that's something we want to overcome as quickly as possible and we're working on this we just made sure debt in the meantime, we can offer our services through external service providers and once again I think the bank provided a very fair offer.

Thank you very much. We now continue with a question once again, it's over zoom, yes, [inaudible]. Good morning, I've got two questions. The first one is about taxes. In the fourth quarter, you received the tax benefit for the overall year. It was 2.4 billion euros less and taxes to be paid down in 2019. The question is where is this coming from towards the end of the year? And is it safe to assume that this will once again happen in 2021 or not? The second question is about the supervisory Board member Alexander [inaudible] who made the headlines recently by saying the journalists of FT and the others should be given a tough hand and the context of the wildcard context. Is that a reputation of risk in your view? Exit rate in 2020 was about 39% that was actually a little lower than we anticipated early in the year a number of reasons drove that.

Frank Hartmann: Thank you very much, Mr. Preuschat. We now continue with a question. Oh, once again, it's over Zoom. Yes. Bernd Neubacher now. Mr. Neubacher.

We now continue with a question.

Oh once again, it's over zoom, yes, paranoid about her now.

Mr known about her.

Okay.

Good morning, I've got two questions.

Bernd Neubacher: Good morning. I've got two questions. The first one is about the taxes. In Q4, you received a tax benefit. For the overall year, it was EUR 2.4 billion less in taxes to be paid than in 2019. The question is, where is this coming from towards the end of the year? Is it safe to assume that this will once again happen in 2021 or not? Second question is about the supervisory board member, Alexander Schütz, who made the headlines recently by saying that journalists of FT and others should be given a tough hand in the context of the Wirecard context. Is that a reputational risk in your view?

The first one is about the Texas and the fourth quarter you received the tax benefit for the overall year. It was 2.4 billion euros, less and Texas to be paid down in 2019. The question is where is this coming from towards the end of the year and.

And is it safe to assume that this will once again happen in 'twenty 'twenty. One on not second question is about the supervisory Board member Alexander shoots who made the headlines recently.

Bye.

I was saying the journal itself F T and and and the others should be give a given a tough hand and the context of the wildcard context is that a reputation of risk and your view exit rate in 'twenty and 'twenty was about 39% that was actually a little lower than we anticipated early and a year a number of reasons drove that.

James von Moltke: Tax rate in 2020 was about 39%. That was actually a little lower than we anticipated early in the year. A number of reasons drove that. In Q4, in particular, we saw a release of a litigation provision that had been non-tax deductible. With that, there was also a release of the tax provision. Also we have an effect which is in a rising stock price, we get a tax benefit on the net present value of the future stock awards. Those two effects have the impact of creating a very small net release of tax provisions in Q4.

But in the fourth quarter and particular, we saw a release of a litigation provision that had been non-tax deductible and so with that, there was also a release of the tax provision. And also we have an effect which is in a rising stock price, we get a tax benefit on the net present value of the future stock rewards. Those two effects had the impact of creating a very small net release of tax provisions in the fourth quarter. For 2021, at this point is quite early and the year to judge, but I would say that an equivalent tax rate to 2020 would be about perhaps an optimistic scenario base case would be a little bit worse than that given number of different dynamics in our tax accounts. [inaudible] Mr. [inaudible] on your second question about the member of the Supervisory Board. Now, we already stated that in general, we do not comment on individual comments made by individual persons. But we also clearly set out that we consider this kind of communication not acceptable. And regarding the further steps to be taken and that's the question for [Mr. Shoots] on the supervisory board, but if you have a look at our website and you'll see that changes have already taken place in the committees of the supervisory board.

And in a rising stock price, we get a tax benefit on the net present value of the future stock rewards those two effects had the impact of creating a very small net release of of tax provisions and the fourth quarter for.

And for 'twenty and 'twenty one.

James von Moltke: For 2021, at this point, it's quite early in the year to judge, but I'd say that an equivalent tax rate to 2020 would be about the perhaps an optimistic scenario. Base case would be a little bit worse than that, given number of different dynamics in our tax accounts.

This point its quite early and the year to judge, but I would say that and equivalent tax rate to 'twenty and 'twenty would be about.

The perhaps and optimistic scenario base case would be a little bit worse than that given number of different dynamics and our tax accounts.

And Omaha.

Christian Sewing: Mr. Neubacher, on your second question about the member of the supervisory board. Now, we already stated that in general, we do not comment on individual comments made by individual persons. But we also clearly set out that we consider this kind of communication not acceptable. Regarding the further steps to be taken, well, that's a question for Mr. Schütz and the supervisory board. But if you have a look at our website and you see that changes have already taken place in the committees of the supervisory board. Well, thank you very much, Mr. Neubacher. We now continue with a question on the chat from Gareth Gore from IFR. CRU six quarters ago, you targeted the leverage exposure coming down to EUR 17 billion by the end of 2020. You have since revised that target upwards twice, and it came in above EUR 70 billion.

Mr. Noah on your second question about the member of the Supervisory Board.

And.

Yes.

Now we already stated debt in general we do not comment on.

Individual comments made by individual persons but.

But we also clearly set out that we consider this kind of communication not acceptable. And regarding the further steps to be taken and that's the question for [Mr. Shoots] on the supervisory board, but if you have a look at our website and you'll see that changes have already taken place in the committees of the supervisory board.

Well said.

Frank Hartmann: Well, thank you very much, Mr. Neubacher. We now continue with a question on the chat from Gareth Gore from IFR. CRU six quarters ago, you targeted the leverage exposure coming down to EUR 17 billion by the end of 2020. You have since revised that target upwards twice, and it came in above EUR 70 billion.

Thank you very much. We now continue with a question on the chat from [inaudible] from IFR. Six quarters ago, you targeted the leverage exposure coming down to 17 billion and by the end of 2020. You have since revised that target upwards twice and it came in above 70 billion. Why is the rundown going so much slower than initially expected in terms of leverage exposure? Thanks. And I'd start by answering that term debt since the end of 2018 or the step off into 2019, we've reduced leverage exposure in the capital used unit by and little over 200 billion euros. So I would call that pretty significant progress. What we talked about with investors and December were some changes you're correct and in our planning and it reflects several different items. One is a higher allocation of central liquidity reserves, which we view is essentially neutral to the group as a whole and the other was the decision in 2020 to focus more on risk-weighted assets than on leverage exposure.

We now continue with a question on the chat from go to a score from Ifr and to see our use six quarters ago, you targeted the leverage exposure coming down to 17 billion and by the end of 'twenty and 'twenty you have since revised that target upwards twice and it came in above 70 billion y.

Frank Hartmann: Why is the run-down going so much slower than initially expected in terms of leverage exposure, James?

And as the rundown going so much slower than initially expected in terms of leverage exposure change.

And I'd start by answering that term debt since the end of 2018 or the step off into 2019, we've reduced leverage exposure and the capital used unit by and little over 200 billion euros. So.

James von Moltke: Well, I'd start by answering that since the end of 2018 or the step off into 2019, we've reduced leverage exposure in the Capital Release Unit by a little over EUR 200 billion. I would call that pretty significant progress. What we talked about with investors in December were some changes, you're correct, in our planning, and it reflects several different items. One is a higher allocation of central liquidity reserves, which we view as essentially neutral to the group as a whole. The other was the decision in 2020 to focus more on risk-weighted assets than on leverage exposure. Then thirdly, as we look to the path for the future, a decision not to, if you like, over-accelerate leverage exposure reductions and incur losses that would otherwise never crystallize.

So I would call that pretty significant progress and what.

What we talked about with investors and December where some changes you're correct and in our planning and it reflects several different.

Current items, one is a higher allocation of central liquidity reserves, which we view is essentially neutral to the group as a whole and the other was the decision in 2020 to focus more on risk weighted assets.

And then on leverage exposure and.

And then thirdly, as we look to the path for the future, a decision not to if you like over accelerate leverage exposure reductions and incur losses that would otherwise never crystallize, we decided that the right economic choice for our investors was to allow the leverage exposures to run off more gently if you like on their own our maturity schedule. So those were the three drivers of the change in the target. But we don't see any fundamental change in the mission or the ultimate destination that we're traveling to the CRU.

James von Moltke: We decided that the right economic choice for our investors was to allow the leverage exposures to run off more gently, if you like, on their own maturity schedule. Those were the three drivers of the change in the target, but we don't see any fundamental change in the mission or the ultimate destination that we're traveling to in the CRU.

And more generally if you like on their own our maturity schedule. So those were the three drivers of the change in the target, but we don't see any fundamental change in the mission or the ultimate destination that we're traveling to and to see our U.

Now moving over back to Zoom, on David [inaudible] AP. Hello, David. David, can you hear us? [inaudible] Good morning. First question is about the unit corporate and others and if it got you right then there you've got a pretax profit of about 1 billion and there you're booking you've cut about 40000 employees there. Now this gives me the impression that the cost of the other coal units of the bank are removed from the court to make that look better. Can you tell us what you've got so many costs and employees and corporate and the others. A second question could you also gives us the cost-income ratio for the entire group for '20 as compared to the previous year. Corporate and other segment there are a number of different impacts that flow through.

Frank Hartmann: Now moving over back to Zoom, David McHugh, AP, please. Hello, David. David, can you hear us? I see Dort, Michael Rasch.

David can you use.

And you see Deutsche.

Michelle.

Frank Hartmann: Well, I can see Michael Rasch from Neue Zürcher Zeitung. Well, we can take you as well. You can hear us, so he's giving us a thumbs up. Michael Rasch there, Neue Zürcher Zeitung.

I could see Michael restroom notorious item well will we be contiguous where you can here so he's giving us that sums up my micro roster Anoia Cherry Hill total.

Good morning.

Michael Rasch: Good morning. First question is about the unit Corporate and Others. If I got you right, then there you've got a pre-tax profit of about EUR 1 billion, and you've got about 40,000 employees there. Now, this gives me the impression that the costs of the other core units of the bank are removed from the core to make that look better. Can you tell us why you've got so many costs and employees in Corporate and Others? Second question, could you also give us the cost-income ratio for the entire group for 2020 and also compared to the previous year?

First question is.

It's about the unit corporate and others and if it got you right. Then there you've got a pretax profit of about 1 billion and there youre booking you've cut about 40000 employees. There now this gives me the impression that the cost of the other coal units of the bank are removed from from from the court.

And make that look better and can you tell us what you've got so many costs and employees and corporate and the others. A second question could you also gives us the cost income ratio for the entire group for 'twenty, and 'twenty and older compared to the previous year.

Corporate and other segment there are a number of different impacts that flow through.

James von Moltke: Corporate and Other segment, there are a number of different impacts that flow through. Let me start with the employees. It is the case that we essentially report the whole body of employees that are in the infrastructure functions in Corporate and Other. Their activities and the cost of their activities are ultimately charged or allocated to the business functions. You see that, by the way, in the difference in the business functions between front office employees and total employees.

And let me start with the employees. It is the case that we essentially report the whole body of employees that are in the infrastructure functions in corporate and other. Their activities and the cost of their activities are ultimately charged or allocated to the business functions. And you see that by the way on the difference and the business functions between front-office employees and total employees. The loss in '20 in the count and the corporate and other areas was larger. than we would normally expect to see there and there were a number of different factors, whether it was balance sheet related factors litigation and some cases. And also to your point some amount of expense that is held in the corporate and other segments essentially where were some of the infrastructures are running worst than plan.

And between front office employees and total employees.

The loss in 'twenty, and 'twenty, and the count and the corporate and other area was larger.

James von Moltke: The loss in 2020 in the Corporate and Other area was larger than we would normally expect to see there, and there were a number of different factors, whether it was balance sheet-related factors, litigation in some cases, and also to your point, some amount of expense that is held in the Corporate and Other segment, essentially where some of the infrastructures are running worse than planned. Those expenses are held in Corporate Other to avoid essentially volatility in the businesses. We of course aim to keep that as low as possible.

And then we would normally expect to see there and there were a number of different factors, whether it was balance sheet related factors litigation and some cases and also to your point some amount of expense that is held in the corporate and other segment essentially where were some of the infrastructures are running worst and plan.

Those expenses are held in corporate other to avoid essentially volatility and the businesses, but we of course aimed to keep that as low as possible. [inaudible] Thank you very much Michael Rush and that was a Ted question from Lena [inaudible] and then we will continue with [inaudible]. If I got it right the return on tangible equity was 0.2% in '20 . Could you please tell us how by '22 you want to be able to increase that ROT by 7.8 percentage points? Start with first of all the second answer and turn the question that you asked which was what was our cost-income ratio at the group level and it was 88% in '20. Obviously, that is a ratio that we are working hard to improve over the next couple of years and naturally the improvement in the cost-income ratio was a big part of the RTO, the return on tangible equity path that we've shown to our investors to 8% in 2022. The biggest part of that path is in fact expenses. Revenues we expect to be essentially flat slightly up over the next two years, but the expense reduction is expected to create a very significant improvement in the cost-income ratio and also thereby the ROTE. Our target for cost-income ratio is 70% in 2022.

Fear and done Michelle Ash.

Frank Hartmann: Thank you very much, Michael Rasch. Now is a chat question from Lena Ludmer, and then we will continue with Katharina Slodczyk from Manager Magazin. Lena Ludmer from Frankfurter Rundschau asks the following: Now, if I got it right, the return on tangible equity was 0.2% in 2020. Could you please tell us how by 2022 you want to be able to increase that ROTE by 7.8%, this point?

Thank you very much Michael Rush and that was a Ted question from Lena <unk> and then we will continue with Qatar and this logic from manager magazine leaner Loopnet from Frankfurt Ranjha asks the following.

If I got it right the return on tangible ex.

Tangible equity was <unk>, 2% in 'twenty and 'twenty could.

Could you please tell us how.

How by 'twenty 'twenty, two you want to be able to increase debt R. O T by 7.8 percentage points.

Start with first of all the second answer and turn the question that you asked which was what was on a cost income ratio at the group level and it was 88% in 'twenty and 'twenty. Obviously that is a ratio that we are working hard to improve over the next couple of years and naturally the improvement and the cost income ratio was a big part of the.

James von Moltke: First of all, the second answer to the question that you asked, which was, what was our cost-income ratio at the group level? It was 88% in 2020. Obviously, that is a ratio that we are working hard to improve over the next couple of years. Naturally, the improvement in the cost-income ratio is a big part of the ROTE, the return on tangible equity path, that we've shown to our investors, to 8% in 2022. The biggest part of that path is, in fact, expenses. Revenues we expect to be essentially flat, slightly up over the next two years. But the expense reduction is expected to create a very significant improvement in the cost-income ratio and also thereby the ROTE. Our target for cost-income ratio is 70% in 2022.

on tangible equity path that we've shown to our investors to 8% in 2022. The biggest part of that path is in fact expenses. Revenues we expect to be essentially flat slightly up over the next two years, but the expense reduction is

expected to create a very significant improvement in the cost-income ratio and also thereby the ROTE. Our target for cost-income ratio is 70% in 2022.

[inaudible] And we now continue with Catarina [inaudible] from [Manager magazine] via Zoom. Catarina, can you hear us? Yes. Good morning, I can see I can hear you can you also hear me? Yes, we do. Alright, two brief questions. Could you briefly comment on credit default? Is one part of it going to stay or the figure is going to be more maybe you can also can give us an outlook for the current year and second question investment banking and it seems to be doing quite well. So you don't need to take care of debt anymore. When will somebody else build it on the board? So that you don't have that double-headed to position? The final number for 2020, I will point out as Christian referred to. Yeah, 41 basis points of average loans and that's exactly and the middle are almost exactly in the middle of the range that we set out in April. We've also indicated that for '21, we expect that to fall and given the outlook that we have for the credit portfolios.

Operator: Ja, danke Nina Ludmann. Jetzt geht's weiter mit Katharina Slodczyk über Zoom vom Manager Magazin.

Frank Hartmann: We now continue with Katharina Slodczyk from manager magazin via Zoom. Katharina, can you hear us? Yes. Good morning. I can see you. I can hear you. Can you also hear me? Yes, we do. All right. Two brief questions. Could you briefly comment on credit defaults? Is 1.8 going to stay, or do you think it's gonna be more? Maybe you also can give us an outlook for the current year. Second question, investment banking seems to be doing quite well. Mr. Sewing, you don't need to take care of that anymore. When will somebody else take that on the board so that you don't have that double-headed position.

Kathryn can you hear US yes. Good morning, I can see I can hear you can you also hear me, yes, we do alright.

Alright, two brief questions.

Could you briefly comment on credit default.

Is one part of it going to stay on the thing that's going to be more maybe you can also can give us and outlook.

Ford and.

The current year and second question investment banking and it seems to be doing quite well. So Mrs savings. So you don't need to take care of debt anymore. When you build somebody else build it on the board. So that you don't have that double headed to position.

James von Moltke: The final number for 2020. I will point out, as Christian referred to, at 41 basis points of average loans, it's exactly in the middle or almost exactly in the middle of the range that we set out in April. We've also indicated that for 2021 we expect that to fall, given the outlook that we have for the credit portfolios. As I said, we think we're appropriately provisioned, and we have by and large a cautiously optimistic view of the path from here, although we haven't given a specific number for 2021.

The final number for 'twenty and 'twenty I will point out as Christian referred to and you.

And at 41 basis points of average loans and that's exactly and the middle are almost exactly in the middle of the range that we set out in April. We've also indicated that for 'twenty, one we expect that to fall and <unk>.

Given the outlook that we have for the credit portfolios.

And as I said, we think we're appropriately provisioned and we have by and large a cautiously optimistic view of the path from here, although we haven't given a specific number for '21. [inaudible]. Well, of course, the supervisory board has to answer that question. But I can tell you that the organized sales organizational structure that we have also against the background of the transformation, which we have embarked upon in investment banking is not an unusual one. Other banks do have a similar situation where the C. O Ultra heads one of the divisions and I think it and turn it turned out not to be such a bad situation. And all the rest is up to the supervisory board. Well. Thank you very much, [Kathryn.] Now we've got only Zoom questions left. And it always may involve a certain delay until we hear the colleague. And now Jasmine [inaudible] via Zoom. Jasmine, can you hear us, can you see us?

F O structure.

Operator: Herr Paul, Slodczyk, Sie haben.

Ms logic.

Christian Sewing: Well, of course, the Supervisory Board has to answer that question, but I can tell you that the organizational structure that we have also against the background of the transformation which we have embarked upon in investment banking, it's not an unusual one. Other banks do have a similar situation where the CEO also heads one of the divisions, and I think it turned out not to be such a bad situation, and all the rest is up to the Supervisory Board. Well, thank you very much, Catherine. Now we've got only Zoom questions left, and it always may involve a certain delay until we hear the colleague. Now Yasmin Osman from Handelsblatt, also via Zoom. Yasmin, can you hear us? Can you see us?

Well of course, the supervisory board has to answer that question.

But I can tell you that the organized sales organizational structure that we have also against the background of the transformation, which we have embarked upon and investment banking is not an unusual one other banks do have a similar situation where the C. O Ultra heads one of the divisions and I think it and turn it turned out not to be such a bad situation.

And and all the rest is up to the supervisory board.

Well. Thank you very much Kathryn Nobody's got only zoom questions left.

And it always may.

And bolt for certain delay until we hear.

And the.

Colleague and now just mean asthma from hundreds per ultra via zoom gentlemen, can you hear us can you see us.

Yeah.

Of course, it also helps us serve you also good questions via chat or telephone because switching over will then happen faster without the delay and once again [inaudible]. Technical staff. Sorry, I was too dumb to unmute myself, well you're not the only one. I've got a question about Brexit. On one hand, I'd like to know what assets are how many assets and what business Deutsche Bank has transferred from the UK to Germany? And how many employees and what do you expect in this regard for 2021? I don't have that number to hand out of the personnel number or the asset number, it's a quite significant move and assets that we affected but that is now sometime in the rearview mirror. We had begun to move our assets now two years ago.

Frank Hartmann: Now, of course, it also helps us if we also get questions via chat or telephone because switching over will then happen faster without the delay. Once again, Yasmin Osman, Handelsblatt. Asking our technical staff. No, sorry, I was a bit too dumb to unmute myself. Well, you're not the only one. Now, I've got a question about Brexit. On one hand, I'd like to know what assets or how many assets or what business Deutsche Bank has transferred from the UK to Germany, and how many employees, and what do you expect in this regard for 2021?

Of course it also helps US serve you also good questions via chat or telephone because switching overbuild and.

Happened faster without the delay and once again just been Osman handelsblatt.

Asking all.

Technical staff now.

Oh, sorry, I was a bit dumbed hood on mute myself, well youre not the only one.

Uh huh.

I've got a question about Brexit.

On one and I'd like to know.

Uh huh.

And what assets are how many assets and what business Deutsche Bank has transferred from the UK to Germany, and how many employees and what do you expect and disregard for 2021.

James von Moltke: I'm afraid I don't have that number to hand, either the personnel number or the asset number. It's quite a significant move in assets that we affected, but that is now some time in the rearview mirror. We had begun to move our assets two years ago, as we built the infrastructure in the Frankfurt booking hub to be able to support that. We've continued that process and engaged very actively with the regulators on their expectations of our ability to support EEA or EU business from Frankfurt. That work is ongoing, and we've been well prepared throughout the Brexit process to be able to provide continuity of services to our clients.

I don't have that number to hand, either the personnel number or the asset number it's a quite significant move and assets that we affected but that is now sometime in the rearview mirror, we had begun to move our assets now two years ago.

As we built the infrastructure in the Frankfurt booking home to be able to support that. We've continued that process and engaged very actively with the regulators on their expectations of our ability to support EEA or EU business from Frankfurt. And that work is ongoing and we've been well prepared throughout the Brexit process to be able to provide continuity of services to our clients. [inaudible] Another question of yours, Jasmine? Can you give us at least a bit of an estimate of how much it has been since 2019, just as roughly? [inaudible] Alright, and then we've got [inaudible]. Who supports various regional newspapers [inaudible] via zoom. Are you there?

And that work is ongoing and <unk> and <unk>.

We've been well prepared throughout the Brexit process to be able to provide continuity of services to our clients.

And I would knock on a falloff on do you just mean another question of yours Jasmine.

Operator: Sehr gut. Noch eine Frage von dir, Yasmin?

Frank Hartmann: Another question of yours, Yasmin? Well, can you give us at least a bit of an estimate of how much it has been since 2019, just as roughly?

Can you give us at least a bit of an estimate of how much. It has been since 2019, just us roughly.

And.

Okay zone.

Operator: Okay.

Yeah.

Alright, and then we've got Ralph orbit choice.

Frank Hartmann: All right. We've got Rolf Obertreis who supports various regional newspapers, Mittelmehrko, Waliser Regionalzeitung, Südwest Presse. Rolf Obertreis via Zoom. Are you there? Well, we also would have Brigitte Scholtes from Deutschlandfunk, but I think once again switching over. Oh, I can see Rolf Obertreis is no longer on the line. Maybe then Brigitte Scholtes from Deutschlandfunk. Well, it seems she also dropped her question. Well, I do not have any more questions. It's 11:37. If this means that all questions have been answered. Well, we can wait for another 10, 15 seconds if something else is coming in through the back office, but that doesn't seem to be the case right now. Of course, we're open to all and any questions. My colleagues also in communications, we are there for you, so please just contact us.

Who supports various regional newspapers [inaudible] via zoom. Are you there?

We also would have [inaudible] from Deutsche on phone, but I think once again switching or I could see Ralph Overdrive says no longer on the line maybe. And then [inaudible]. Well, It seems she also dropped her question. Well, I do not have any more questions. It's 11:37. This means that all questions have been answered. And we can wait for another 10, 15 seconds if something else is coming in through the back office, but that doesn't seem to be the case right now. Of course, we're open to all and any questions on my colleagues are also in communications. We are there for you. So please just contact us. Well here's an email question coming in or maybe via chat. And my colleague Frank Hartman just told me so that there's a question. And now here it is, yes. Paul Clark financial news. Any decision on offering your employees a permanent and flexible working arrangement? How will this affect your real estate footprint?

I think once again switching or I could see Ralph Overdrive says no long.

On the line maybe.

And then bring it to shoulders from Deutsche that Frank.

Okay.

Well.

It seems she also dropped her question.

Well I do not have any more questions. It's 11 37.

This means that all questions have been answered.

Well.

And we can wait for another 10 15 seconds, if something else is coming in through the back office, but that doesn't seem to be the case right. Now of course, we're open to all and any questions on my my colleagues Ulta and communications. We are there for you. So please just contact us well here's an email question coming in.

Frank Hartmann: Well, here's an email question coming in or maybe via chat. My colleague Frank Hartmann just told me so, that there's a question. Now here it is. Yes. Paul Clarke, Financial News.

Or maybe via Chet.

And my colleague Frank Hartman, and just help me so that there's a question.

And now here it is yes.

Paul Clark financial news any decision on offering your employees and permanent and flexible working arrangement.

Operator: Any decision on offering your employees a permanent flexible working arrangement, how will this affect your real estate footprint?

How will this affect your real estate footprint?

But Paul, this is obviously a topic, which I also alluded to. [inaudible] IE that we allow of course are working from home, but at the same time, the opportunity also to come into the bank. This is now with our HR Department. And we actually actively include our staff in finding out what the best priority, the best setup is. At the end of the day, yes. It will result in less real estate cost. I can't give you now a precise answer because we are still in the process of analyzing debt because it's not simply a cost issue. It's really also of how we make sure that staff can engage and that we have the opportunity to have the people in the bank at least partially, but it is a substantial amount where we will also bank on.

Christian Sewing: Well, Paul, this is obviously a topic which I also alluded to.

Operator: Ja, das ist ein Thema, das ich auch in meinen anfänglichen Ausführungen angesprochen habe. Corona hat ja eindeutig gezeigt, dass eine neue Art und Weise des Arbeitens in der Zukunft stattfinden wird.

Absolute.

And I E that we allow of course are working from home, but at the same time and the opportunity also to come into the bank. This is now with our HR Department.

Christian Sewing: i.e., that we allow, of course, working from home, but at the same time the opportunity also to come into the bank. This is now with our HR department, and we actually actively include our staff in finding out what the best priority, the best setup is. At the end of the day, yes, it will result in less real estate costs. I can't give you now a precise answer because we are still in the process of analyzing that, because it's not simply a cost issue. It's really also how we make sure that staff can engage and that we have the opportunity to have the people in the bank at least partially. It is a substantial amount where we will also bank on.

And we actually actively include our staff in finding out what the best priority. The best setup is at the end of the day, yes. It will result in less real estate cost.

And I can't give you now a precise answer because we are still and the and the process of analyzing debt because it's not simply a cost issue. It's really also of how we make sure that staff and engage and debt we have the opportunity to have the people in the bank at least partially but it is a substantial amount.

will also bank on.

[inaudible] Well now we've got rough overdrive not via zoom, but via our chat. Now you did not comment on the dividend. I assume that the bank follows the ECB recommendation and doesn't and payout any dividends. In 2019 as part of our restructuring announcements that we would not propose dividends in respect of either '19 or 2020, and we would expect to resume dividends in respect of the financial year 2020 so payable in 2022. We've reiterated that that remains our plan of course subject to regulatory approval and profitability as part of our larger distribution objectives of our 5 billion over the next several years. So absolutely we want to reconfirm those messages. [inaudible]

Operator: Ja, dann kommt doch von Rolf Obertreis

Frank Hartmann: Well, now we've got Rolf Obertreis, not via Zoom, but via our chat. Now, you did not comment on the dividend. Now, I assume that the bank follows the ECB recommendation and does not pay out any dividend.

James von Moltke: of 2019, as part of our restructuring, announcements that we would not propose dividends in respect of either 2019 or 2020, but we would expect to resume dividends in respect of the financial year 2020, so payable in 2022. We've reiterated that remains our plan, of course, subject to regulatory approval and profitability as part of our larger distribution objectives of EUR 5 billion over the next several years. Absolutely, we want to reconfirm those messages.

Announcements that we would not propose dividends in respect of either 19, or 2020, and we would expect to resume dividends in respect of the financial year 2000, Twenty's on payable in 'twenty and 'twenty. Two we've reiterated that that remains our plan of course subject to regulatory approval and profitability as part of our.

Larger distribution objectives of our 5 billion over the next several years, so absolutely we want to reconfirm those messages.

Zone on.

Operator: Danke an Rolf Obertreis

Duncan.

Operator: Danke an Rolf Obertreis

With that, thanks to Rove [Overdrive] for setting in this question now via the chat and we are now done with our first virtual annual press conference. I really hope that this has been the first and also the last virtual one of this kind. And we really would be happy if we could welcome you again next year here in Frankfurt face to face. That really would be something we would all, I think we'd be hoping for and if you've got any further questions and then just get in touch with the communications Department and apart from that, thank you very much and keep well. Bye bye.

Frank Hartmann: With that, thanks to Rolf Obertreis for sending in his question now via the chat. With that, we are now done with our first virtual annual press conference. I really hope that this has been the first and also the last virtual one of this kind, and we really would be happy if we could welcome you again next year here in Frankfurt face to face. That really would be something we would all, I think, would be hoping for. If you've got any further questions, then just get in touch with the communications department. Apart from that, thank you very much and keep well. Bye-bye.

We are now done.

And with our first virtual annual press conference I really hope that this has been the first and also the last virtual one of this kind and we really would be happy if.

We could welcome you again next year here in Frankfurt face to face that really would be something we would all I think we'd be hoping for and if you've got any further questions and then just get in touch with the communications Department and apart from debt.

Thank you very much and keep well bye bye.

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Q4 2020 Deutsche Bank AG Earnings Press Conference

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