Finance Monthly CFO Awards 2021

F i nance Month l y CFO Awards 2021 - GERMANY - - 15 - • Our Private Bank is the clear leader in Europe’s largest economy. We’re focused on expanding our global wealth management and digital banking capabilities while reaping the synergy benefits from our merger with Deutsche Postbank. We aim to counter the impact of low-interest rates by growing loans and assets under management; • In Asset Management, our objective is to build DWS, our Asset Management subsidiary floated in 2018, into a global top-10 asset manager. We aim to achieve this by leveraging our commanding market share in Germany, seizing opportunities to grow in Asia and leveraging strategic partnerships to expand our distribution and product expertise. In the middle of a global pandemic, that’s an ambitious agenda. What progress have you made so far? The pandemic forced us to transfer around 70% of Deutsche Bank’s staff – more than 60,000 people – to working from home in a matter of days. Despite that, we’re on track with our strategic and financial objectives: • We have significantly improved profitability. In the first half of 2021, we generated the best first half-year profits since 2015, with all four core businesses contributing to year-on- year profit growth. Both our cost/ income ratio and Return on Tangible Equity are well on track towards our 2022 targets. • We have reduced operating costs significantly. We have achieved fourteen consecutive quarters of year- on-year reductions in our underlying cost base. Adjusted for transformation- related effects, costs are running at around €1 billion per quarter lower than in early 2018. • We have cut more than € 200 billion of balance sheet related to non-core activities. Our Capital Release Unit has cut leverage exposure by around 75%, or € 217 billion. Risk-weighted assets have been reduced by more than half to € 32 billion, thereby already meeting our year-end 2022 target. • We have kept our capital strong. During the eight quarters of the transformation programme so far, our Common Equity Tier 1 ratio has remained comfortably above our threshold of at least 12.5%, despite the twin challenges of transformation- related costs and risk-weighted asset inflation driven by regulatory changes. Our CET1 ratio currently stands at 13.2%. • Our sharpened focus on clients is paying off. Our Investment Bank has made market share gains in key areas of strength. Our Corporate Bank has successfully launched initiatives to expand our offering in growing business areas like payments. Our Private Bank has offset deposit margin compression with growth in both new client loans and inflows into investment products. Over the past twelve months, our Asset Management business has attracted € 45 billion in net newmoney from clients and assets under management have grown by € 114 billion to a record high of € 859 billion. • Our progress is gaining recognition in the capital markets! In the past two months, two leading rating agencies, Moody’s and Fitch, have upgraded Deutsche Bank’s ratings while maintaining a positive outlook on the bank. How important is sustainable finance for Deutsche Bank’s future setup? DeutscheBank is absolutely committed to sustainable finance, both within our own operations and in helping our clients on the path to meeting the Paris Agreement on Climate Change. We have set clear targets for financing and investment in environmental, social and governance (ESG) activities, both at the Group level and for each core business. In the eighteen months up to June 2021, our cumulative volumes of ESG financing and investment reached nearly € 100 billion – halfway to our goal of at least € 200 billion by the end of 2023. Deutsche Bank serves on the Sustainable Finance Committee of the German Government and is a founding member of the Net Zero Banking Alliance and other industry bodies. Our commitment to a more sustainable Deutsche Bank is also supported by our key stakeholders: Moody’s Investor Services, the leading rating agency which recently upgraded Deutsche Bank’s credit ratings, made