Deutsche Bank 2016 DBTC CCAR Stress Testing DBTC CCAR Stress - - PowerPoint PPT Presentation

Deutsche Bank

Deutsche Bank 2016 DBTC CCAR Stress Testing

Deutsche Bank

DBTC CCAR Stress Testing

DBTC CCAR Overview DBTC Is Only One Part of US Operations

• The sole Deutsche Bank entity that underwent

CCAR stress testing in 2016 is Deutsche Bank Trust

• Corp. (DBTC)
• DBTC is an entity within Deutsche Bank AG’s US
• perations. DBTC comprises the US transaction

bank and wealth management business and represents one component of US operations

• It is inaccurate to refer to DBTC as “Deutsche

Bank” or Deutsche Bank’s “US operations/unit”

• DBTC is among the best capitalized banks stress

tested by the Fed under CCAR; 2016 DFAST estimates found that under the most severe, “severely adverse” market scenario tested, DBTC’s projected common equity tier 1 capital would not fall below 30.1%

• ver the nine-quarter planning horizon
• CCAR results for DBTC do not impact Deutsche

Bank AG’s ability to pay dividends, repurchase shares or take other planned capital actions

• DB USA Corp., the forthcoming intermediate

holding company (IHC), which will represent substantially all of the US (non-branch) operations, will not undergo public CCAR stress testing until 2018, the year that all IHCs become subject to CCAR stress testing by the Fed

1 Deutsche Bank Americas Holding Corp. 2 German American Capital Corp. 3 Deutsche Bank US Financial Markets Holding Corp. 4 Deutsche Bank Securities Inc. 5 Deutsche Bank Trust Corp. 6 Deutsche Bank Trust Company Americas

Deutsche Bank AG

DBAG Cayman Islands Branch

DBTC5 DBTCA6 DB USA Corp. DBAH1 GACC2 DBUSH3 DBSI4

DBAG New York Branch

US Operations*

2016 CCAR Stress Tested Entity

2

*As of July 1, 2016

Deutsche Bank

DBTC CCAR Stress Testing

Facts and Important Information

• DBTC underwent CCAR stress testing for the first

time in 2015

• US peers began stress testing in 2009 and

have had seven years to adjust to regulatory requirements as Fed stress tests have evolved

• DBTC has had only one prior year of

experience with CCAR and has had to adapt to a significantly more sophisticated process

• The Fed did not object to DBTC’s 2016 Capital Plan
• n a quantitative basis; the Fed objected on a

qualitative basis

• 2016 DFAST estimates found that under the

most severe, “severely adverse” market scenario tested, DBTC’s projected common equity tier 1 capital would not fall below 30.1% over the nine- quarter planning horizon

• Receiving a qualitative objection to a Capital Plan is

common among new filers – HSBC, RBS and Santander received qualitative objections in their initial years undergoing CCAR stress testing

• CCAR results for DBTC do not impact Deutsche

Bank AG’s ability to pay dividends, repurchase shares or take other planned capital actions

3