News January 20, 2016

A message from John Cryan on Deutsche Bank's preliminary full year and fourth quarter 2015 results

Dear Colleagues,

Today we announced to the market some important information about our upcoming fourth quarter results. We expect to report a net loss of EUR 2.1 billion for the fourth quarter of 2015, driven primarily by three factors.

First, we anticipate further provisions for regulatory and litigation matters of approximately EUR 1.2 billion. These provisions may be affected by further events before we finalise the Bank’s annual financial statements on March 11, 2016.

Second, we expect charges for restructuring and severance of EUR 0.8 billion. These charges are largely related to the previously-announced branch closure plans in our Private & Business Clients (PBC) business division. In addition, PBC will take a EUR 0.1 billion charge for the impairment of software that will not be used in light of our decision to deconsolidate Postbank.

Third, challenging market conditions contributed to a year-on-year decline in fourth quarter 2015 revenues, principally in our Corporate Banking & Securities (CB&S) business division.

For the full-year 2015, we expect to report revenues of EUR 33.5 billion, a loss before income taxes of approximately EUR 6.1 billion, and a net loss of approximately EUR 6.7 billion. The full year results include previously disclosed impairments taken in the third quarter of EUR 5.8 billion of goodwill and intangibles, full year litigation provisions of approximately EUR 5.2 billion, and restructuring and severance charges of approximately EUR 1.0 billion.

This will be the Bank’s first full-year loss since 2008, and it is sobering.

The charges above, however, are consequences of the necessary decisions that we have taken as part of Strategy 2020. These decisions will make Deutsche Bank simpler and more efficient by reducing the number of products and services we offer, deepening our relationships with the most promising clients, and bringing focus to the number of locations in which we operate. They will also help us to lower the Bank’s risk profile by being prepared to resolve existing regulatory and litigation matters as quickly as possible.

As I said when updating you on Strategy 2020 in October, we expect the next two years to consist of hard work, burdened by the costs of restructuring the Bank and making much-needed investments. By taking these steps, however, we have the potential to transform ourselves from a restructuring story into a strong, efficient, and well-run institution that serves our clients, counterparts, and society well, and generates good returns for our shareholders.

We will update the market with our full fourth quarter and full-year 2015 results on January 28. In the meantime, you can find further information about today’s news on the intranet.

Together with my colleagues on the Management Board, I thank you for your ongoing work as we build a better Deutsche Bank.

Kind regards,

John Cryan

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