Deutsche Bank AG Q1 FY2026 earnings call

Global House Bank Scaling - Focused Growth

• Asset-gathering businesses show momentum in revenues and AUM with net inflows from clients. Strict capital discipline delivered positive SVA. Reduced sub-hurdle mortgages in private bank and redeployed resources.

Divisional Performance

• Private bank: Made progress on transformation, hired ~100 coverage staff (80 on board), ahead of schedule on branch closures (75% completed for 2026), client assets up 30 billion euros since year start.
• Asset management: Achieved 11 billion euros net flows, total assets under management increased, driven by passive and cash products.
• Corporate Bank: Sustained business volume growth, loans and deposits up year-on-year.

AI Application

• Using AI to accelerate core processes, e.g., significantly accelerating credit process in corporate bank to improve client experience and cut costs.

Strategic Direction

• Leveraging leadership in Germany, seeing growth opportunities in private sector investments, reforms, defense, and infrastructure plans. Supported clients in dynamic environment with strong balance sheet and service capabilities.

Net revenues for the quarter were 8.7 billion euros, up 2% year-on-year or 6% excluding FX impacts. Post-tax return on tangible equity stood at 12.7%. Cost-income ratio improved to below 59%. In the private bank, client assets increased by 30 billion euros since the start of the year with net AUM inflows of 11 billion euros. Asset management achieved total net flows of 11 billion euros. Corporate Bank saw loans grow to 486 billion euros (up ~4 billion euros year-on-year) and deposits reach 687 billion euros (up 22 billion euros). The non-investment banking businesses contribute over 61% to the revenue mix.

Revenue Outlook

• Confident in reaching revenue ambition of around 33 billion euros, supported by key banking book NII and growth in net commission and fee income.

Cost and Expense

• Disciplined execution of strategy with cost guidance, expecting gradual increase in expenses in second quarter for restructuring and hiring but maintaining overall cost discipline.

Capital and Payout

• Finished Q1 with CET1 ratio of 13.8% within operating range. Payout ratio of 60% maintained, with first share buyback ~60% completed, and intention to update on next distribution for 2026.

Middle East Exposure

• Very limited direct exposure to the Middle East.

Macroeconomic Uncertainties

• Monitor clients across industries, and have put in place a management overlay to reflect broader macroeconomic uncertainties. Portfolio performance remains within expectation but continue to monitor.

Q: Regarding revenue guidance and divisional outlook, especially in light of Middle East conflicts and FX dynamics, A: Confident in achieving 33 billion revenue target, with strong momentum in asset-gathering businesses like private bank and asset management continuing, investment bank showing resilient performance, and corporate bank expected to see revenue improvement sequentially.

Q: On RWA growth dynamics and share buyback outlook, A: RWA increased due to business growth in credit RWA, market risk, etc. First share buyback ~60% completed, with intention to update on next distribution based on performance and market conditions.