Deutsche Bank AG (NYSE:DB) Q3 2019 Earnings Conference Call - Final Transcript

Oct 30, 2019 • 08:00 am ET


Deutsche Bank AG (NYSE:DB) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. I am Amy, your Chorus Call operator. Welcome and thank you for joining the Q3 2019 Analyst Call of Deutsche Bank. Throughout today's recorded part -- presentation, all participants will be in a listen-only mode.

[Operator Instructions]

I would now like to turn the conference over to James Rivett, Head of Investor Relations. Please go ahead.

James Rivett

Thank you, Amy, and good afternoon or good morning and thank you all for joining us today. As usual on our call, our CEO, Christian Sewing will speak first; and then James von Moltke, our CFO, will take you through the rest of the earnings presentation which is available for download at After the presentation, we'll obviously be happy to take your questions.But before we get started, let me just remind you that the presentation may contain forward-looking statements, which may not develop as we currently expect. I therefore ask you to take notice of the precautionary warning at the end of our materials.

With that, let me hand over to Christian.

Christian Sewing

Thank you, James and good afternoon everyone and welcome from me. In July, we spoke to you about our strategy to radically transform our Bank by 2022. Today, we can tell you, we are on track, the trends in the core bank, the performance in the Capital Release Unit, headcount, costs and capital are all running in line with or better than we planned.The longer-term story will be a key part of what we discussed with you at the Investor Deep Dive on the 10th of December, I hope as many of you can join us for that.

Today, I will focus on the progress we made in the quarter towards our four objectives for 2019, starting on Slide one. This management team is absolutely focused on execution. We are delivering on our near-term objectives, which sets us up to deliver on our long-term goals. First: we told you we would continue to manage our balance sheet conservatively. This is our non-negotiable starting point and our initial results are encouraging. Our common equity Tier 1 ratio was stable in the quarter and at the high-end of our international peer group.

Second, we said we would refocus our strategy on four core businesses which has strong positions in attractive markets and which are all profitable. We also said we would grow revenues in our less market-sensitive areas and here, as you will see in a moment, the underlying trends are encouraging with positive drivers.

Third, our Capital Release Unit is up and running and delivering. We made significant progress in reducing risk-weighted assets and leverage exposure in the quarter. We are confident of hitting our objectives for 2019 and beyond.

And finally, we continued our work to reduce costs. We have reduced the adjusted costs year-on-year, excluding the bank levy and transformation charges for the seventh quarter in a row. We are on track to hit our full-year 2019 target.

Let me now give you