Deutsche Bank Aktiengesellschaft (DBK) Earnings Call Transcript & Summary

Hello, and welcome to the Deutsche Bank 2020 Investor Deep Dive. I'm James Rivett, Head of Investor Relations, and I'll be hosting today. My job is to introduce the speakers and moderate the Q&A. Our aim is to make the next few hours informative for you. We would have wanted to see you here in person today, but we all know why that's not possible. So we have tried to make the event as close to a live experience as we could. You will notice that we've prerecorded several of the presentations in the last couple of days. That's just to make sure that COVID-19 didn't interrupt our timetable. We also have some presenters dialing in from other locations. We're doing as best to make sure their connections are as clear as possible. But before we get started, lawyers exist in both the virtual and the real world. They've asked me to remind you that the future is uncertain and that every presentation contains forward-looking statements. The future may develop differently than we currently expect. We've divided the event into 3 sections: first, presentations about our transformation at the group level, starting with some faces that are well known to most of you, Christian; and James. They will then be followed by our Chief Risk Officer, Stuart Lewis; Fabrizio Campelli, our Chief Transformation Officer; and Bernd Leukert who's responsible for technology, data and innovation. The presentations and transcripts for these 5 presenters are now available on our website. The links to which should be on the screen now. We will end the first section with a Q&A session when you'll be able to ask questions to this first group of presenters. We will take your questions broadly in the order that they're registered. The registration will open shortly, and we recommend you submit your questions early. We have 3 options for those of you who'd like to ask questions. This is a little bit more complicated than usual. First, we will take video questions via Zoom, then those questions submitted by the chat and finally, over the phone. Detailed instructions on these options are shown on the Event homepage. If you're having technical issues or have questions, then please contact the Investor Relations team via the same e-mail. After a short break, we move to the business presentations. Our 4 core business leaders will outline the progress they've made over the last 12 months and their paths towards their 2022 targets. After all 4 presentations, we'll be back for another Q&A session. Then in our final section, we will introduce our regions, the Americas and Asia Pacific. And finally, Christian will end with a few closing remarks. With that, let us start the event. [Presentation]

Welcome once more to our second Investor Deep Dive, and many thanks for joining. I'm looking forward to the next couple of hours, in which we will discuss the progress made and our view on the path forward. And of course, we will also discuss the impact of the virus, which prevents us from meeting in person. While not seeing each other is unfortunate, we felt it is important to update you on the progress we made since last year's Investor Deep Dive. It is time to document that we kept our promises and to describe in more detail how our transformation will continue over the course of the coming 2 years. And similar to last year, my fellow management board members and I, plus our business heads, look forward to answering any questions you have. We will try to make this afternoon as interactive as possible, even though it's all virtual. So where are we on our transformation journey? We actually started back in 2018. In the first phase, we stabilized our bank and laid the foundations we could then build on. In July 2019, we launched Phase 2, the most fundamental transformations of Deutsche Bank in 2 decades. This includes a new setup of our bank coupled with ambitious financial targets up to 2022. And our management team continues to be fully focused on executing with a relentless delivery mindset, and this includes the actual restructuring work, which, as we always said, would mainly happen in the first 6 quarters following our strategy announcement. With this period almost behind us, we are now gradually moving into Phase 3, a phase, which will mainly see us focused on ensuring sustainable profitability by growing our businesses while remaining disciplined on costs and capital. And today, for the first time, we would like to provide you with a more detailed outline of what Phase III will look like. But before we get there, let's take a moment to check our delivery track record over the past 18 months. When we met last year, you were wondering whether our newly established core bank was actually competitive. If we would be able to cut costs and exit businesses as fast as planned and to what extent revenues would suffer as a result. And last but not least, you questioned our ability to fund this transformation with existing resources. Today, we can say we tackled of these issues head on, and we have delivered. Our core bank has proven its competitiveness. More than 70% of our revenues are generated by businesses where we have a leading market position. And in the first 9 months of this year, we achieved year-on-year revenue growth of 8%. And this positive momentum has continued into the fourth quarter. On the way, we have won market share in important business areas, and we believe that a large part of these gains will be sustainable. At the same time, we continue to be relentless on cost with year-on-year reduction in 11 consecutive quarters, excluding transformation charges and bank levies, and we are about to complete the 12th consecutive quarter. With the expected achievement of our cost target at the end of this year, we would have cut costs by EUR 3.3 billion in the last 2 years. Growing revenues and continued discipline on costs led to an operating leverage of 11% after 3 quarters. On this basis, we were able to achieve a pretax profit of more than EUR 800 million in the first 9 months of this year, but that's only part of the story. In our core bank, pre-provision net revenues were EUR 5.2 billion, and this demonstrates the strength of our operating businesses. It demonstrates the potential we can build on when loan loss provisions normalize again. It is thanks to this performance, but also to our progress in the Capital Release Unit, that our balance sheet is even more solid than it was a year ago. We reduced risk-weighted assets in the Capital Release Unit by 45% compared to 2018 levels. And as we expect to have 85% of the anticipated transformation-related effects behind us by year-end, there should be no longer any doubt that we can fund our strategy with existing resources. In other words, we think this progress shows that the capital issue is off the table. And we should not forget we achieved all of this in an extraordinary environment. We operated in the midst of a pandemic causing more than 1.5 million casualties worldwide. and resulting in the most severe economic slump in postwar history. And this was possible because we were and are part of the solution, being at our clients' side when they need us most. And this included, first and foremost, servicing their financing needs. In the first 9 months of the year, we helped clients raise debt with about EUR 1.5 trillion. This means an almost 60% increase year-on-year. In addition, we have been the most active bank in the German program for government-sponsored loans. And at the same time, we have proven our ability to adapt our business model to this new environment where necessary. We have offset the better part of the interest rate headwinds with charging agreements in place for about EUR 75 billion of deposits, our corporate bank and our wealth management business, both are running ahead of plan. And at the same time, we are helping clients to find suitable solutions to preserve wealth in a negative interest rate environment. This is reflected in almost EUR 30 billion of net inflows in our private bank and in our asset management business. We have also accelerated the adjustments in our private bank to change customer behavior. Including recently announced branch closures, we will have reduced our Deutsche Bank branch network by more than 40% since 2016, and our Postbank network by more than 30%. So all in all, in this extraordinary year, we have even increased our relevance for our clients, and we have demonstrated how flexible we are in tackling new challenges head on, while at the same time, making the best of opportunities. We have achieved all this while continuously investing in technology and controls. While we reduced our branch network, as we just mentioned, we constantly strengthen our digital offerings. In the first 9 months of 2020, the usage of our mobile app for Deutsche Bank customers has increased by almost 40% year-on-year. Across our investment bank and corporate bank, we have more than 90,000 clients actively using our fast-growing Autobahn platform. By having continuously invested into our technology, we are now going to fast-track our development. Our partnership with Google Cloud will elevate our IT infrastructure into a more efficient and cloud-based environment. And that will enable us to focus more on innovation and client applications. Bernd Leukert will explain our technology strategy in more detail today. Equally important, we have spent about EUR 2 billion in 2 years on our controls. Today, our compliance function daily monitors 3 million transaction and 1 million communication events. In market risk management, we analyze up to 30 billion valuation calculations per day. But we won't stop here, and we will continue to invest in our controls, especially to improve our transaction monitoring further. At the same time, we are seeing progress regarding the most important foundation of our success, our people. It is no secret that the internal mood and morale at Deutsche Bank had suffered for some time. This has changed fundamentally. According to our annual people survey, 87% of our staff embrace our strategy, 10 percentage points more than a year ago. They also feel more valued and have more trust in our leadership team. The clarity of our strategy, the business successes and the positive relative share price performance have been important drivers of this development. Since 2012, our employees have never been as committed to Deutsche Bank as they are today, and they have never felt so well enabled to do their job. So our people are truly motivated to give their best for our bank, and this provides a huge upside potential. Of course, we had led to see that our progress is also acknowledged externally. We have seen the first positive rating action in 13 years. Our CDS spreads have moved closer to peer average. And since we met for last year's IDD, Deutsche Bank shares have outperformed our European and American peers and reduced the discount on our price/tangible book value ratio. Obviously, our valuation came from a low level. And even after the progress we made, we are not yet where we want to be. So let's have a look at the next steps on our journey. Given our progress, given the strong foundation we now have in terms of capital, cost and business model, as well as the overall operating momentum, we are entering the next phase of our transformation. The ultimate goal is, and has to be, to ensure sustainable profitability, and this requires us to raise our game to the next level. It will be paramount to remain fully disciplined on cost and balance sheet management, but that's not enough. We will also have to shift gears to ensure sustainable growth. How do we bring this together? This will be the main theme for today. And that's also reflected in these questions some of you have asked in advance. Can we continue our planned trajectory and cost reductions? Can we keep the very competitive level of credit loss provisions? Is our revenue development sustainable? And finally, will we be able to return capital to shareholders as announced in July 2019? So let's go through these questions 1 by 1, starting with costs. When we look at the almost EUR 6 billion of cost reductions, which we announced in July 2019, we are already more than halfway through. And given our recent track record, we remain confident that we will be able to continue on this path. To meet our 2022 target, we have to take out another EUR 2.8 billion in adjusted costs. You may say this is the tougher part. And of course, reducing costs by that amount will require another significant effort. But why am I so confident, anyway? Because we are well equipped due to the work we have done so far, because what we have to do is to continue on our trajectory. And starting into the new year, we can expect a run rate for annual costs of EUR 18.4 billion, excluding bank levies. This will even leave us with some room for targeted investments when there are opportunities to create additional value. We expect further savings coming from central and divisional measures, which we have detailed and validated plans for. In addition, we will focus on tackling the so-called stranded costs in our Capital Release Unit. Reducing those more rapidly will be the main focus area for Louis Kitchen and Frank Kuhnke going forward. But the story doesn't stop there. Learning from this extraordinary year, we see potential for further cost reductions. To give just 2 examples, we have started to examine our real estate setup, and we will certainly not return to the same level of travel costs we had prior to COVID. On this basis, we expect to bring our adjusted costs even below our original EUR 17 billion target by 2022, and to reach EUR 16.7 billion ex transformation charges instead. James von Moltke will discuss our plan in further detail later on. And we will ensure relentless execution of these plans as we did over the past 2.5 years. This is supported by the agenda of our Chief Transformation Office, which further strengthened the discipline in our processes as Fabrizio Campelli, will also explain later today. Let's move on to our balance sheet quality. We have been very successful in managing credit risk and its impact on credit loss provisions during the coronavirus period. We provided an outlook early on, and we were pleased that credit loss provisions developed in line with our expectations so far. And although the pandemic isn't over yet, we are optimistic that the peak in CLPs is behind us. So we expect a slight reduction in 2021 and a further normalization to a range of 25 to 30 basis points of loans in 2022. We continue to benefit from our limited exposure to sectors most affected by the pandemic. We know that we can build on a diversified loan book with about 50% exposure in Germany, one of the most stable economies in the world. We have stringent underwriting standards and a tight risk management framework as we have demonstrated over the cycle. And actually, our provisions have been consistently at the lower end of the industry for more than a decade. This is a remarkable track record for Stuart Lewis and his team, and Stuart will provide you with further details later. But let me highlight already now the composition of our loan book and the quality of our risk management are a particular asset during such a crisis. All of this provides us with room to support our clients in the best possible manner and to selectively grow our business in this environment. Speaking of growth, let's turn to the area where you have articulated the biggest question marks. Are we able to grow revenue sustainably in this environment? We fully acknowledge additional headwinds compared to the original assumptions at the time of our strategy announcement, namely the even lower-for-longer interest rate environment. Of course, this poses a certain risk to our revenue assumptions down the line. At the same time, there have been also tailwinds, which we are making the best use of. And some of our business are more affected by the headwinds while others benefit from the tailwinds. Therefore, despite not changing our strategic approach, we expect a slightly different revenue composition compared to the plan we presented last year. Overall, we see ourselves capable to reach about EUR 24.4 billion in revenues by 2022. How does this look in detail? Thanks to our refocused strategy, we have 4 leading businesses, all of which are well positioned to grow. Our corporate bank is the global Hausbank, combining a strong home market with a network across 151 countries, something only a handful of banks worldwide can offer. To compensate for negative interest rates, we had charging agreements in place for almost EUR 70 billion of deposits at the end of September, and we won't stop here. In the last 3 quarters, we have seen an 18% increase in payment revenues. We also have a strong position in growth regions, especially in Asia Pacific, where we have seen revenue increase by 6% year-on-year in the first 9 months of this year. Stefan Hoops will lead you through our initiatives later on. Our refocused Investment Bank is a top global player in fixed income and financing where we have demonstrated our strength this year. In addition, we have a focused origination and advisory business, including a leading position in debt capital markets. Mark Fedorcik and Ram Nayak will explain why we consider a large part of this year's revenue performance as sustainable. But let me highlight already now we are very pleased that recent revenue growth does not only reflect a favorable environment. It was mainly the result of our refocused business model and clients reengaging with us which led to gains in market share. We outperformed the fixed income market in the third quarter. And in Origination & Advisory, we reached our highest market share in 6 quarters. This makes us confident that our investment bank can outperform our original plans. Our private bank is the leader in our home market. And we have strong positions in major European countries and a global wealth management franchise, which has grown significantly over the past few years. We have demonstrated our potential in the first 3 quarters of 2020, with growth in loans and EUR 11 billion of net new assets. In addition, we have taken crucial steps to realize synergies going forward, both in Germany and in the international private bank. Karl von Rohr and Claudio de Sanctis will discuss how we plan to continue on this path. Another leading business in our home market is our asset manager, DWS, which can also count on its global footprint. Here, too, we have seen net inflows in the first 9 months of the year, notably in ESG products. At the same time Asoka Woehrmann and his team significantly cut costs. For the first 9 months of the year, DWS' adjusted cost-to-income ratio was already down to 64%, reaching the target level for 2021. In this turbulent year, it has been an advantage for us to rely on revenues from businesses where we are one of the major players. And that's also why we are all well positioned for further growth, something we will explain in detail in our business presentations. We feel encouraged by our revenue and market share momentum this year. And we are seeing a couple of tectonic shifts in the economy, which do play to our strengths. Let's dig deeper into this. It has become common to say that our economy, post COVID, won't look the same as before, but there is more to it. In fact, next to COVID, there are a number of fundamental changes in the world we are operating in. Overall, we see 5 global trends that will shape the economy. The low interest rate environment. We expect interest rates to remain close to or below 0 for the next years whilst protection is becoming more important as societies are aging across the developed world. We see a huge sustainability transformation throughout every aspect of the global economy. And we expect a more fragmented sort of globalization, now often called glocalization. And of course, digitalization will continue to reshape global business. For all of these trends, Deutsche Bank is well positioned. This will translate to 4 important growth engines for the year till 2022 and beyond. Economists expect an increase in global financing demand. In an aging society, wealth preservation will become more pressing. Our deep local presence worldwide is more of an asset in a world of glocalization. And climate change and social tension will lead to a growing demand for sustainable finance products. In other words, while the external environment feels challenging, there are pockets of opportunities within that, opportunities we did not see to that extent 18 months ago, opportunities we are determined to take advantage of. Let me go through these 4 growth engines, starting with the increase in financing demand globally. Within the first months of this year, global debt increased by as much as $15 trillion, the fastest growth on record. On the one hand, we are seeing a new super cycle in government debt due to the enormous programs to support economies. On the other hand, we see increasing financing demand in the private sector. This is partly driven by the pandemic, but mainly by the necessary investments in digitalization and environmentally friendly business models. Against this backdrop, there is considerable revenue potential, both on the lending side and in our debt capital markets and fixed income trading business. And we are positioned at the very heart of this opportunity, both within our investment bank and our corporate bank. We are a global financing powerhouse. When if not now is the time to bring our strength in DCM, LDCM and FIC into play? We have a strong position in handling government bonds, which is a prerequisite for our strength in the corporate debt market as well. And we have the necessary technology platforms to serve market participants efficiently. All of this will drive revenues. And while we think that 2020 has been an exceptional year, we are convinced that this year's growth will be, to a large part, sustainable. Turning to the second growth engine we see, aging societies will increase the need for people to make savings or invest in a pension plan. But growing wealth has become more challenging in a negative interest rate environment. Savers need to become investors. They need thorough advice and reliable risk management solutions. And especially banks and asset managers will have a key role to play here. Deutsche Bank is the #1 advisory bank in Germany, with a strong position in major Eurozone markets and a global wealth management business. And within our asset manager, DWS, we can offer highly competitive investment products including active, passive and alternative funds and a leading ESG offering. Another trend from which we will benefit is glocalization. Lower trade volumes have peaked, but that doesn't mean that globalization will disappear. It will simply just get more complex. We are seeing a shift in global supply chains and an increasing need for global companies to adopt national or regional aspects. And this exactly plays to our traditional strengths as the global Hausbank. We are on the ground in almost 60 countries. We can combine a deep regional footprint with our global network, a combination not many banks can offer. And our global presence includes a strong position in the Americas. On the one hand, our U.S. business is a core part of our Investment Bank. On the other hand, being strong in the U.S. is also crucial for other divisions, in particular, for our ability to serve corporate clients worldwide. Christiana Riley will describe what we are doing to open the depth of the U.S. market to European funds. Another region where we can demonstrate the value of our deep local presence is Asia Pacific. There are several highly dynamic economies within the region with an expected growth rate of around 5% on average. Increase in trade, the demand in financing and hedging will be even higher than in the rest of the world. And Deutsche Bank is on the ground in 14 countries in a strong position to benefit from these developments in the region in all of our businesses. Alexander von zur Muhlen will discuss our Asia Pacific business in further detail later today. Another undisputed global trend that will drive growth is sustainability. It is not only about climate change, it is about the environment overall social inclusion and good governance. This will require the business world, but also the public sector to invest heavily. The European Union alone plans to mobilize EUR 1 trillion of sustainable investments until 2030. This is a tremendous opportunity as ESG compliance is becoming more relevant for more and more market participants worldwide. As Deutsche Bank, we are now giving annual milestones for our EUR 200 billion target until 2025, and senior management compensation will depend on achieving them. Being a European bank is an advantage in this context as Europe is setting the standards. But our most relevant advantage is that we, as a universal bank, can cover the whole value chain. We can generate the assets for investment products, which are in high demand now and that was our lending and origination activities in the corporate bank and in the investment bank. All this means, you're going to see us selectively shift gears into growth mode. We are determined to benefit from the growth opportunities highlighted today, and we are confident that we will be able to capture our fair share. That requires sufficient room in a bank's balance sheet, and we have it. Our core Tier 1 ratio stood at 13.3% at the end of the third quarter. This is well ahead of our regulatory requirements and our own target of a CET1 ratio of above 12.5%. Our capital strength provides us with enough financing power to support clients and fund additional business while always remaining cautious of making best use of our resources. Our CFO, James von Moltke, will discuss our capital planning in more detail in his presentation. Coupled with our continued even tightened cost discipline and the revenue opportunities we see, we are confident that we can deliver sustainable profitability. And yes, we remain committed to return EUR 5 billion of capital to our shareholders starting in 2022. That represents a significant portion of our current market value. At the same time, we continue to change the way we work as we promised last year. In this regard, there are 5 priorities on our management agenda. We have already become better in putting our clients at the center of everything we do. Improved cross-selling rates are testament to this. But we are not yet on the same level as some of our peers. So there is further potential if we intensify our client coverage and further improve cross-divisional collaboration. We have invested in the development of our people and our leadership team and we will continue to do so. We are putting the right people in the right places. and giving them more room to act like entrepreneurs. And we are working on a new mindset to become even more agile and client-centric organization. We will also continue to develop our technology. At first, it was about ensuring stability. And this extraordinary year has demonstrated how resilient our systems are. Currently, we are working on making our IT also more efficient. And in the next phase, we will also deploy technology to drive growth. As I mentioned, we have accelerated our sustainability agenda, integrating it into our processes across the bank, and we are building on our traditionally strong risk management culture. We are not only managing our own balance sheet, but also our clients' risk. And this has to become a core element of our product suite. Transforming a bank's culture is not done within a year or even within 2. But when I look at the progress we have made, when I feel the momentum and the strong boost to morale across our bank, I feel very encouraged by what we have achieved over the past 1.5 years. Let me conclude. Our transformation is on track. Having successfully refocused our business model, we are gradually entering a new phase in our journey. We will continue to manage costs, risk and balance sheet with the same rigor you have seen from us since 2018. We appreciate the positive feedback from clients, employees and other stakeholders, and we are determined to build on this momentum. And on the revenue side, we are shifting gears now. It is not about stabilizing our business anymore. It is about bringing it to the next level. It is about benefiting from 5 global trends, all of which play to our strengths. And in capturing these opportunities, we will demonstrate the same attitude as before. We will react fast in a highly disciplined manner and with a focus on executing what we have announced. So as we embark on the next stage of our journey, we have a clear path to ensure consistent profitability and capital returns. And we are confident that we will reach the financial targets for 2022. We see ourselves fully capable to achieve group revenues of approximately EUR 24.4 billion by 2022, an adjusted cost base of EUR 16.7 billion ex transformation charges and a CET1 ratio of above 12.5% at all times. All of this will enable us to deliver a post-tax return on tangible equity of 8% in 2022 despite a more challenging operating environment. As planned, we aim to return EUR 5 billion of excess capital to our shareholders starting in 2022. Since 2018, we have consistently achieved our targets and delivered or over-delivered against our plans. That remains our continued ambition. That's what you can expect from us now and in future. With that, let me hand over to James, who will lead you through our financials. Thank you.

Hello, and welcome also from me. I'm James von Moltke, Group CFO. I've been with the bank since July 2017. Christian has outlined our strategic vision and priorities. I'll now take you through the details of our financial ambitions, where we stand today and the path we see to 2022. In summary, the work we've done on transformation has positioned us well to achieve our goals. For 2020, we're on track with or slightly ahead of our plans. Looking forward, the macroeconomic challenges have intensified, but the underlying performance of our franchise and the additional actions we have taken position us to continue our progress toward our 2022 ROTE target. We remain focused on delivering all aspects of our plan. This positions the company to distribute around EUR 5 billion of capital to shareholders starting in 2022. Let's now go through the different aspects of the plan, starting on Slide 2. A core objective of our transformation is to improve sustainable profitability. That means generating positive operating leverage by growing revenues and at the same time, reducing costs. And we've done that in each quarter of this year in the core bank and at a group level. This has driven significant improvements in profitability. Improved Core Bank profitability has offset the negative impact of the capital release unit wind-down and higher provisions for credit losses given COVID-19. More of the Core Bank's profitability will flow to the group's bottom line as the impact of the Capital Release Unit wind-down diminishes, provisions for credit losses normalize and as we put transformation costs behind us. As Christian said, we remain on track to reach our 2020 milestones set out on Slide 3. We reaffirm our EUR 19.5 billion target for adjusted costs excluding transformation charges and expenses eligible for reimbursement related to Prime Finance. We remain confident in our guidance for provision for credit losses which Stuart will discuss. Our leverage ratio stands at 4.4%, tracking to our 2020 milestone of 4.5%. Our Common Equity Tier 1 ratio at 13.3% is comfortably above our minimum threshold of 12.5% over the period to the end of 2022. Derisking in the Capital Release Unit is also on track. Delivering on our 2020 milestones provides a solid step off for driving towards our 2022 targets. Principally, the path to our 8% return on tangible equity objective. Slide 4 shows the key elements of that path. We're conscious that any plan is impacted by the operating environment. The headwinds we face have intensified since our strategy announcement in July last year. However, we have demonstrated that this management team is capable of finding a path to its objectives despite these changes. Today, my colleagues and I will provide you with an outline of our current plan in which we continue to see a path to our 8% ROTE goal for 2022. We recognize that this is an ambitious plan in a challenging environment. But based on where we stand today, it's achievable. Let me now take you through the different elements, starting with revenues on Slide 5. At our investor deep dive last year, we described our revenue plan of EUR 24.5 billion in 2022. Since then, we have performed ahead of plan in several areas. First, as Christian highlighted, our businesses have outperformed our prior assumptions. We now expect our core businesses to generate around EUR 800 million of additional revenues compared to our expectations 1 year ago. I'll come back to this shortly. Second, we said we'd lower funding costs. Since then, our credit spreads have tightened as the market has started to recognize our progress. Simply by maintaining spreads on our unsecured instruments at current levels and continuing our focused management of balance sheet resources, our funding costs will be approximately EUR 200 million lower than our prior estimate. Third, we are ahead of plan in passing through negative interest rates. We have pricing agreements in place on accounts with EUR 75 billion of deposits. Relative to our assumption last year, we are currently generating around EUR 100 million more revenue from this action than we expected a year ago. Regrettably, headwinds have intensified, most notably the interest rate outlook. Compared to last December, the movement in forward interest rate curves has reduced our revenue forecast for 2022 by a further EUR 1.2 billion. Our assumption on interest rate headwinds may prove conservative. We do not, for example, include any benefits from additional tiering or other measures by central banks. The net result is that our current revenue plan of EUR 24.4 billion in 2022 is broadly in line with our planning assumption of a year ago. We see this as achievable even against a challenging backdrop. Slide 6 outlines the revenue growth areas. Our business heads will discuss later. Karl and Claudio will outline the Private Bank's revenue progression based on loan and AUM growth as well as repricing actions. Stefan will explain the growth opportunities for the corporate bank, principally in Asia and our strategic initiatives in payments and SME banking. Mark and Ram will explain why a sizable portion of the revenue improvement the investment bank has achieved in 2020 should be sustainable. They will describe how the benefits of client reengagement, combined with our targeted investments, positions us well even as the industry wallet normalizes. Finally, Asoka will outline why expanded partnerships and new product launches, including in ESG, should support the asset management top line. In addition, we've been working intensively on cross-business collaboration. We're already seeing results, as Fabrizio will explain. Building on these initiatives, let's now turn to our revenue assumptions by segment on Slide 7. For the core bank overall, we still expect revenues to grow by around 1% per year in the period from 2018 to 2022. Some of the specifics have changed, but we are performing in line with or better than our original plans, especially in the investment bank. With almost half of this period now behind us, we generated 2% growth in the core bank comparing the last 12 months to the year 2018. In the remaining 9 quarters through 2022, we now expect core bank revenues to be broadly flat. This development is driven principally by 2 factors: First, we expect modest revenue growth in the Corporate Bank and Private Bank. The expected growth rates in these businesses are consistent with the underlying growth we see today. This underlying growth should feed through to the top line as the interest rate headwinds roll off, consistent with the current forward curve. Second, in the investment bank, we do expect that we will give back some of the outperformance we have seen in 2020 as conditions normalize, but we expect to remain well ahead of our 2019 level. Now let's turn to costs on Slide 8. We see a clear path to our new 2022 cost target of EUR 16.7 billion, below our prior target of EUR 17 billion. The improvement is driven both by the momentum we've created on cost management so far and by additional measures we've identified. Some of these form part of our response to COVID-19. For 2021, we aim to reduce adjusted costs to around EUR 18.5 billion, of which almost 80% is already in our run rate. Consistent with our prior plans and guidance, we do not expect a linear path of cost reductions to 2022 due to the investment burden we anticipate in 2021. We plan incremental investments of EUR 300 million next year, principally in our German IT integration, as Bernd and Karl will outline. These investments position us to generate the savings required to reach our revised 2022 target and put us on a path to additional efficiencies in future years. All our businesses will contribute to these cost reductions, as you can see on Slide 9. From 2018 to the end of 2020, we will have reduced adjusted costs by EUR 3.3 billion, more than halfway to our new 2022 target. In the business session today, my colleagues will go through their assumptions on their respective businesses on our path to delivering a further EUR 2.8 billion of savings by 2022. The first stage of our strategy focused on front office reductions. These are now largely behind us. Our targeted front-office hiring plans in both the Investment Bank and Wealth Management, which Mark and Claudio will outline, are fully factored into our plan. Reductions are increasingly focused on our infrastructure functions and the Private Bank principally in Germany. On Slide 10, we describe how this path breaks down by cost item. We expect around EUR 1.4 billion of annual savings in compensation and benefits as we reduce our workforce. IT costs should decline by almost EUR 900 million, reflecting efficiency gains and more focused investments, as Bernd will describe. We also anticipate savings of around EUR 200 million in professional services, building on the savings we've already achieved in this area. Part of the reductions across both IT and professional services comes from the internalization of currently outsourced services. We expect additional savings of around EUR 100 million in occupancy costs. That compares to our assumption of flat costs in this area a year ago. These additional savings represent new initiatives we've identified over the past year, including in response to COVID-19. Beyond 2022, we expect occupancy costs to decline further as we complete the migration to more efficient campuses in both London and New York. Finally, our plans include assumptions on bank levies, which are shown on Slide 11. Bank levies have cost us around EUR 2 billion over the last 3 years. That's equivalent to 30% of the entire German banking sector's contribution. Going forward, we assume that the Single Resolution Board maintains its original target for an overall fund size of EUR 55 billion. On this basis, our contributions should decline to between EUR 300 million and EUR 400 million in 2021 and '22, respectively. The SRB is currently contemplating raising the total fund size to above EUR 70 billion. Under that scenario, our bank levy assumptions would increase by around EUR 300 million in each of the next 2 years. Let me now turn from adjusted costs to transformation-related effects. Slide 12 compares the assumptions we made last year to our current plans. Total spend through 2022 is broadly unchanged from our original plan, but we've made refinements in specific line items. We expect deferred tax asset valuation adjustments to be lower, reflecting our improved profitability and outlook. This will be offset by higher costs in 2 areas. First, restructuring and severance. This is driven partly by higher involuntary redundancies we'll need to make to offset the lower voluntary attrition we've seen since COVID-19. We're also working on measures to reduce the workforce in a cost-efficient but socially responsible manner. This includes agreements with third parties, for example, the sale of Postbank Systems and the Prime Finance transfer. These 2 agreements will result in almost 3,000 employees leaving the company with their jobs preserved. Second, we see about EUR 100 million of incremental transformation expenses for real estate. By the end of this year, we will have put 85% of the total transformation-related effects we anticipate between 2019 and 2022 behind us. Now let me turn to the Capital Release Unit on Slide 13. The CRU has focused on 3 aims: reducing RWAs, cutting leverage exposure and lowering costs. So far, the pace of execution against all 3 has been strong. Specifically, we reduced RWAs by EUR 33 billion or nearly half since the end of 2018. In CET1 terms, this implies the liberation of over EUR 4 billion of capital, helping to offset the transformation impacts I just referred to. We've cut leverage exposure by EUR 191 billion, or nearly 70%, supporting our leverage ratio and improving our overall balance sheet efficiency. Adjusted costs have come down by nearly half since the second quarter of 2019 representing a reduction of EUR 1.5 billion since 2018. We have driven down the direct costs of the businesses moved into the CRU, particularly equities. We've also targeted, at source, the drivers of allocated costs, including trading books, systems and legal entities. Reducing costs is 1 lever to reduce the P&L drag of the CRU. The other is limiting the negative revenues on our wind-down efforts. The negative revenues from derisking have proved to be more modest than we originally assumed as we show on Slide 14. At last year's deep dive, we estimated that CRU would generate negative revenues in the range of EUR 100 million to EUR 250 million per quarter, principally driven by derisking. So far, we've outperformed that guidance. From CRUs inception to the end of September, we have recorded EUR 400 million of derisking costs associated with approximately 420 discrete derisking events. 98% of these events have been P&L neutral or occurred broadly in line with our existing marks. Derisking has generated material negative P&L relating to only 8 events. For these, we expect the positive lifetime capital impact to outweigh the upfront negative P&L cost. For 2021, we expect a similar or slightly lower revenue burden from derisking despite a slower pace of RWA reductions as we detail on Slide 15. The glide path of asset reductions in the CRU will slow over the next 2 years. By the end of 2022, we expect RWAs to be down to EUR 32 billion. This is in line with our original target. The remaining EUR 9 billion of credit and market risk RWA is structurally challenging to exit but will carry limited market and valuation risk. As we analyze the expected remaining portfolio, we believe that it is economically more rational to hedge this portfolio through its life. We believe that this decision reflects a better outcome for shareholders, although it means leverage exposure will be higher than we originally estimated. From 2022 onwards, the residual assets in the CRU are likely to incur only modest hedging and funding costs. These costs should decline as assets roll off over their remaining life. The weighted average life of this portfolio today is just over 6 years. Now let's turn to the CRU's third objective, reducing costs on Slide 16. So far, we've reduced adjusted costs in the CRU by nearly half to EUR 1.8 billion. In the next 2 years, we aim to reduce costs by an additional EUR 1 billion. We expect to achieve this through the completion of the Prime Finance transfer, lower bank levies and reductions in the costs allocated to the unit. Our original plan was for residual costs of around EUR 1 billion in 2022. We've identified an incremental EUR 200 million of savings, thanks to the implementation of our driver-based cost management program. This program has reduced the expected residual costs to around EUR 800 million. We are confident that we have the tools and management focus to reduce residual costs further over time. To sum up, the CRU has made excellent progress in reducing RWA, leverage exposure and costs with revenue impacts, which have been significantly better than our expectations of last year. Reducing the capital allocation to the Capital Release Unit is a central element of our resource allocation plans, which we outline on Slide 17. Disciplined resource allocation is a core element of our strategic planning. The underlying trends are broadly consistent with our prior disclosures. Capital allocated to the core businesses should increase as we wind down the CRU. The Private Bank and Corporate Bank should see higher capital allocations, reflecting our growth ambitions in these areas. In the investment bank, we are reallocating existing resources to higher return areas maintaining our discipline despite the improved revenue outlook. Consequently, capital allocated to the investment bank should be broadly stable to today at a little over 40% of the group's total. Equity allocated to sales and trading activities across the Investment Bank and the CRU should continue to decline from around 40% of the group's total at the end of 2018 to around 30% by 2022. On Slide 18, we set out our goals for returns in our core businesses that support the path to our 2022 targets. We remain committed to our overall return target. But the returns in individual businesses differ from our original assumptions as we'll discuss in the business sessions shortly. On Slide 19, we set out how the different businesses contribute to the overall Core Bank return target in 2022. In the first 9 months of 2020, Core Bank post-tax ROTE improved to 6% on an adjusted basis, up from 3% in the same period of 2019. While the relative contribution between the core businesses has changed, we continue to see a path to a Core Bank return of at least 9% in 2022. This level of return in the core bank is consistent with our group return target, which we set out on Slide 20. As you can see, the majority of the improvement in group ROTE should come from factors in our control, cost reductions and the wind down of the CRU. Delivery on these elements alone will improve our ROTE by 6 percentage points compared to the 9-month level in 2020. Additionally, we expect provision for credit losses to return to more normalized levels by 2022, as Stuart will explain. We assume a modest decline in group revenues consistent with the normalization in investment banking we've mentioned in 2022 compared with the first 9 months of 2020 annualized. As I described earlier, we have measures in place to offset the additional interest rate headwinds. Capturing these revenue opportunities will require some balance sheet growth relative to our prior expectations. We now expect our balance sheet to be more or less unchanged from the Q3 2020 level. We expect to redeploy some of our excess liquidity into loan growth in the Corporate Bank and the Private Bank. As a result, we foresee improvements in the leverage ratio but at a slower pace. Our 2022 ratio assumes that the temporary exclusion of cash deposited with central banks lapses, which negatively impacts our ratio by 40 basis points. Taking these factors into account, our new target is 4.5%, still comfortably above our 3.75% regulatory requirement from said 2023. These return targets that I outlined earlier take full account of future regulatory inflation, which we outline on Slide 22. We take a conservative approach to planning for this. To date, our assumptions for the total impact of regulatory inflation have been broadly accurate. However, the timing has been somewhat slower than we anticipated. By year-end 2020, we will have absorbed EUR 10 billion of additional inflation. This includes 6 billion in the first 9 months with around EUR 4 billion to come in the fourth quarter. Our 2021 outlook is unchanged at EUR 15 billion. Compared to our prior forecasts, we now expect the EUR 5 billion of inflation related to the definition of default to shift into 2022. Looking further out, our assumptions on the impact of the Basel III final rules remain unchanged. Overall, we expect organic capital generation to keep us in line with requirements without any further positive benefits from rule changes. Greater clarity on regulatory headwinds gives us even greater confidence relating to the capital outlook through the remainder of our transformation. This gives us a clear line of sight to our updated capital path on Slide 23. Our current CET1 ratio of 13.3% and provides sufficient headroom to absorb anticipated regulatory inflation and to support growth in our core businesses. In the near term, we're committed to keeping our CET1 ratio above 12.5%. As organic capital generation by the core bank improves, more falls to the bottom line for distribution to shareholders. We are committed to using capital in a disciplined manner. Our plan assumptions and the likely path of regulatory inflation are consistent with returning EUR 5 billion of capital to shareholders starting in 2022. Subject to regulatory approval, we would look to begin dividends and share buybacks in 2022. On Slide 24, we summarize our updated financial targets for 2022. And Some of the constituent parts have changed for the reasons we've discussed. However, our overall commitment to our post-tax return on tangible equity targets for both the group and the core bank remains unchanged. With that, let me conclude. We've made significant progress. We're on track to meet or exceed our 2020 objectives. We recognized that going forward, execution risks have risen notably due to the macroeconomic uncertainty around the impact of COVID-19. However, the improved outlook in our businesses and other measures are currently sufficient to offset the increased headwinds. We are committed to making further progress toward our goals as we will demonstrate, our path may change, but our destination remains the same. This management team is committed to our 2022 targets. This includes an 8% post tax ROTE in 2022. We're confident along the journey to higher returns on capital as well as the return of capital. Thank you.

Thank you, James. So Christian has outlined our strategic priorities. James has given you the financial plan that supports our objectives. As both of them mentioned, our transformation must be grounded in strong risk management. [Presentation]

To address this topic, I'd now like to hand over to Stuart Lewis, our Chief Risk Officer. Stuart's 15-minute presentation will take you through our approach to risk management. He'll also address why we believe that we're relatively well positioned to absorb the challenges facing the industry in the coming periods. Stuart's presentation builds on the Risk Deep Dive that we hosted back in June.

Welcome from my side. I'm Stuart Lewis. I joined Deutsche Bank in 1996, and I've been Chief Risk Officer since 2012. As we discussed with you in our Risk Deep Dive in June, we entered 2020 with a disciplined risk management framework. This gave us a firm foundation to manage through extraordinary stress. Our high-quality loan portfolio and conservative underwriting standards positioned us well in respect of credit risk. We manage both market risk and liquidity risk tightly through extreme volatility. Our success in navigating this period was partly due to investments in systems and processes in recent years. We continue to invest, especially in anti-financial crime. That investment is fully accounted for in the group's overall cost reduction targets. We expect 2021 to remain demanding. However, we believe we're well positioned to face these challenges. On Slide 2, you see some of the benefits of this conservative approach. Our CET1 ratio is considerably above our regulatory requirements. It has held relatively stable through the year. Provisions for credit losses remain low compared to peer average. Our average bar has risen, reflecting higher market volatility. However, it remains very modest by historical or competitive standards. On both liquidity and funding, our key metrics are as strong as they've been at any time since the financial crisis of 2008. Underlying these strong metrics is our disciplined risk management framework supported by structures, systems and processes. We outline this on Slide 3. We went into the COVID crisis in a position of strength. That's because our framework provided multiple layers of protection. Our risk appetite is calibrated to capital adequacy and earnings stability. The threshold for key metrics of the bank are cascaded down to individual businesses. We employ more than 400,000 risk limits set by country, industry, asset class and individual client. We manage credit and market risk limits dynamically and monitor liquidity daily along multiple dimensions. We make extensive use of credit enhancement via high-quality collateral and structural protection, for example, through first lien positions. Additionally, our loan portfolio benefits from EUR 44 billion in CLO and CDS hedges. Four out of our 5 largest provisions in 2020 are hedged. Our dynamic market risk hedging strategy provided highly effective in the extreme volatility in March and April. Our rigorous stress testing approach takes into account a range of severities. It's built around a number of historical and hypothetical scenarios. This enables us to identify and address potential vulnerabilities in our portfolios. Likewise, for liquidity risk, our conservative positioning is supported by stress testing and active monitoring. That equipped us well to accommodate drawdowns and provide new lending for clients in the first half of the year. We benefited from well-established crisis management procedures, robust nonfinancial risk management frameworks and clear governance around our risk culture and conduct. Our anti-financial crime and compliance teams monitor 3 million transactions and around 1 million communications in 12 languages per day. A second key factor was agile and proactive management during the crisis. We summarized this on Slide 4. In late 2019, we are already monitoring the onset of COVID in China. We identified industries vulnerable to the pandemic. That enabled us to conduct impact assessments. We launched a regional crisis management response in January and our global response in February. That positioned us well to deal with the market dislocations of March and April. We continued to run additional stress tests against mid- and long-term scenarios. We further tightened our risk appetite principally in market risk, but also in credit risk. We took advantage of periods of strong markets to successfully derisk our LDCM underwriting pipeline. This gave us capacity to keep supporting clients. Economic uncertainties persist, so we continue to manage and monitor these risks closely. All of this was underpinned by investments in data, technology and controls over recent years. Let's take a look at some of these on Slide 5. In the past 4 years, we've invested around EUR 1.2 billion in data, technology and controls. These investments have strengthened the quality and granularity of our data across all risk disciplines. We'll continue to invest significantly in technology in 2021, particularly in anti-financial crime or AFC. We aim to be an industry leader in sustainability, so we're continuing to develop our framework for climate risk. Now let's focus on our main risk areas, starting with credit risk. Slide 6 shows our EUR 433 billion loan book by business, geography and focus portfolios. More than half of our portfolio is in the Private Bank, primarily low-risk German retail mortgages with loan-to-values of around 70%. More than half is in Germany, which has historically been a low-risk market, thanks to low debt levels and decisive government action. As a result, our home market was less impacted by COVID than any other leading economies. A relatively small proportion of our loan book, around 15%, consists of portfolio in areas most impacted by the crisis. We're confident our risks in these areas is well contained. Let's look at these in more detail. I'll start with commercial real estate on Slide 7. Our EUR 29 billion CRE portfolio makes up around 7% of our loan book. We typically benefit from a senior position in the capital structure. That means we're well protected by high-quality collateral. The portfolio is well diversified. Average exposure is less than EUR 60 million. Around 3/4 or EUR 22 billion is in lower risk assets, such as office, residential or mixed use. We went into the crisis with conservative loan-to-value ratios, around 60% on a weighted average basis. Corporate bank exposures are EUR 6 billion. They're predominantly German, a former Postbank portfolio. These have caused no Stage 3 provisions year-to-date. The remaining EUR 7 billion is in higher-risk areas. These include hotels, condominiums and retail. Quality is high, as is the commitment from sponsors. Going into the crisis, weighted average loan-to-values were between 50% and 60%. That's a significant cushion against falls in value. A smaller subset of this is in what we describe as focus portfolios. This exposure is EUR 1.6 billion. That's less than 40 basis points of our total loan book. This small portfolio is diversified across 24 assets, principally U.S. hotels. For these, indicative loan to value has risen to 80% on a weighted average basis. So we still have a cushion. Now a few words on other focus portfolios on Slide 8. The aviation sector is less than 1% of our loan book. Exposures are largely secured by new single-aisle aircraft at major carriers. We've reduced commitments by nearly 20% this year and 83% of loans are performing. In leveraged debt capital markets, we've reduced exposures by around 50% to EUR 5 billion this year. Our exposure is well diversified and almost exclusively secured by senior first lien positions. Our consumer finance portfolio is EUR 24 billion, around 6% of our loan book, one of the lowest proportions amongst major international banks. It is predominantly current account-linked credits and installment loans, less than 10% is credit card lending. Delinquency ratios are broadly stable. Over 90% of clients who took advantage of moratoria have now resumed payments. To sum up, we believe our exposures across these focus areas are manageable. In aggregate, we expect provisioning for focus portfolios to remain elevated, but contained in 2021. Now let's turn to the overall picture and provisions on Slide 9. With our first quarter results at the height of the pandemic, we gave guidance for provisions to be 35 to 45 basis points of loans in 2020. Today, that guidance still holds true. In 2021, we expect provisions to remain above pre-COVID levels, but slightly lower than this year. If you compare provisions with actual charge-offs over the last 6 years, you see that we've been conservative in our provisioning. Charge-offs have never been above 100% of provisions over this period. They've been around 90% on average. Second, the ratio was lower in 2020 year-to-date as provisions in 2020 have increased, driven by the COVID-19 pandemic. Charge-offs are a lagging indicator. So over time, we expect this ratio to rise. We expect to return to the long-term average in following years as the economy recovers and provision levels normalize, as Christian outlined. With that, let's turn to market and liquidity risk on Slide 10. In a fast-changing environment, agility is key to managing market risk. Our hard work and investments in risk frameworks, systems and processes have paid off. As volatility spiked, we reviewed risk appetite dynamically. We reviewed around 16,000 limits and adjusted over 1,500 of these. We've rolled out full revaluation historical simulation VaR. That enables us to calculate around 30 billion repricings every day. We can analyze and manage risk at a deeper, more granular level. Preparation, hedging and stress testing helped us manage risk tightly. That helped our trading platform to perform well, as Ram will explain. We went into the crisis with strong liquidity. At the end of 2019, reserves were EUR 222 billion, and our liquidity coverage ratio was 141%. That give us flexibility to support clients suffering liquidity stress. Liquidity rebounded quickly. By the end of the second quarter, liquidity had risen to EUR 232 billion already above pre COVID levels. Liquidity further strengthened to EUR 253 billion by the end of the third quarter. Now let's turn to nonfinancial risk on Slide 11. These are some results of our work to strengthen our risk culture. Our nonfinancial risk costs are now modest by historical and peer standards. We continue to make progress in AFC. For example, we've exited around 60% of our correspondent banking relationships in recent years due to risk concerns, and we've reinforced our know-your-client processes. We're confident we're on the right track in AFC, but we acknowledge that there is still a significant book of work ahead. We've established strategic remediation programs, which will address open issues in a front-to-back manner. These are partnerships between our risk function and our businesses in collaboration with our technology and strategic analytics teams. We're also working on this as part of our partnership agreement with Google Cloud. Now before I sum up, I'd like to say a few words on the outlook. We expect 2021 to be another demanding year for risk management, though not as tough as 2020. We believe we're well positioned to meet the challenges. We see credit defaults remain elevated as governments scale back support schemes. Our forecast may prove conservative if a vaccine is widely available early in the new year. Interest rates will be lower for longer. We expect investors and savers to continue to search for yield. This is good for some of our businesses, but[ risk-off ] days will create volatility. Finally, COVID will continue to impact the way we work. We're not going back to the status quo ante. The trend to promote working will likely continue. This will bring new operational risk challenges, and we believe we are well prepared. With that, let me conclude. We successfully navigated exceptional stresses this year. That was thanks to a strong risk management framework and agile management through the crisis. We've shown strength across all major impacted risk types. We've made significant enhancements to our control framework, but the work and investment must continue, in particular with AFC. And with solid capital and liquidity reserves, we're well prepared to face future uncertainties. Thank you. [Presentation]

One of the questions we get asked a lot is what's different this time? Part of the answer lies in the way that we're approaching this transformation. That includes creating a dedicated transformation office run by Fabrizio Campelli. As Fabrizio will outline in the next 10 minutes, he and his team are bringing rigor and focus to ensure we stay on track to our 2022 goals. As Christian highlighted, another element of our transformation is ensuring that our people are motivated. As the management board member also responsible for HR topics, Fabrizio, will also give some details on our progress here.

Hello, everyone. I'm Fabrizio Campelli, and I'm the Chief Transformation Officer of Deutsche Bank. I joined the bank nearly 17 years ago. And over the years, I gained a fair amount of insight into the organization by working in and leading several businesses and infrastructure functions. This department was created a year ago but did not feature heavily in last year's Investor Deep Dive. So I wanted to spend the next 10 minutes or so explaining the purpose and mandate of the Chief Transformation Office and how we are ensuring that our bank delivers on its strategy. The Chief Transformation Office was created to oversee the disciplined delivery of the bank's transformation agenda, as outlined in July 2019. We have created a well-defined portfolio of initiatives and key deliverables. And around that, we've built strong governance and systems to track against our targets. The Chief Transformation Office, however, does not just drive the transformation agenda. It also directly contributes to new cost and revenue measures to address challenges in our environment and it supports a significant part of the management agenda that Christian talked about earlier, and I will come back to this in a few minutes. So you can see that the transformation office's overarching purpose is to be both an enabler of our strategic agenda as well as an enforcer of discipline in its delivery. As you may remember from last year's Investor Deep Dive, we have structured the program around 20 transformation initiatives, which are aligned with our strategy of refocusing our business model around our 4 core businesses, restructuring our infrastructure to reduce costs and become more efficient, reinvigorating our workforce around a more entrepreneurial mindset and a stronger control culture and optimizing our returns through disciplined use of capital and balance sheet. More specifically, these 20 core transformation initiatives rely on the disciplined execution of around 70 key deliverables, which in turn require us to achieve around 800 milestones and manage a number of risks and dependencies through a new governance framework. These key deliverables are expected to contribute the largest portion of our plan's financial benefit. On expenses alone, they represent almost 3/4 of the cost reductions we are targeting by 2022. There are also nonfinancial benefits such as an improved control environment and enhanced data quality, which we monitor closely across the bank. We aim to focus on leading indicators so that we have an early warning system to alert us if anything deviates from our plans or expectations. This way, we can escalate any problems rapidly to the relevant decision-making bodies of the bank. Furthermore, this enables us to identify possible future delays to key programs, which could have material consequences to our goal and identify, well ahead of time, measures to mitigate the risks to the overall plan. Another important benefit of this new approach is better resource prioritization. We are able to focus the whole organization more rigorously than ever around top priorities. This systematic approach is keeping execution on track and delivering results, as you will see on the next slide. Despite the challenges of the coronavirus pandemic, our transformation has remained firmly on track. Over the course of 2020, we have taken many decisions and have concluded a number of very tangible actions across all businesses and technology areas. The milestones highlighted on the left of this slide point to an important aspect of this transformation. This management team is very committed to getting things done. The results of this approach are quite visible. Overall, during the first 9 months of the year, we have achieved 90% of the milestones and 130% of the cost savings we had identified and planned for within our key deliverables portfolio. This helped us to keep us on course on costs as well as on nonfinancial benefits despite the turbulence of 2020. So being on track or ahead of our objective so far gives us confidence that we will achieve our 2022 goals. Managing the disciplined execution of the transformation agenda is a key part of the transformation office, but not the only one. We're also tasked with acting as a catalyst for new ideas to help mitigate risks that can arise in the turbulent environment that we're operating in. As a team, we continue to look at ways to originate, validate and then implement new initiatives that improve our bank's outlook on cost, revenues or nonfinancial goals. For example, we have launched an end-to-end process engineering program, deploying artificial intelligence to find more effective ways of working. We are using data tracing tools to do the heavy lifting for us. So in just 6 to 8 weeks, we can identify tangible measures to improve processes, client experience and efficiency, something that would have taken us 6 months previously. We're doing this in partnership with a leading German financial technology company Celonis. By 2022, we expect process engineering to deliver over EUR 60 million in cost efficiencies just from the 40 processes we will engineer first, as you heard already from my colleague, [ Morgane Meillon ]. To pick another example, we are also learning from our experiences during the COVID pandemic to think about how we and our employees would like to work differently in the future. It is clear that more employees would favor more flexible work models and that it is possible to work efficiently remotely. So we're operating in close partnership with Frank Kuhnke and the Chief Operating Office team to develop a long-term remote working model which will help us improve our employees' experience, drive more efficient usage of our office space without compromising our productivity or supervisory requirements. This is a good example of the work we do to, not only focus on improving our current financial position, but also to contribute to a long-term transformation of our organization. Supporting the execution of the management agenda that Christian presented earlier is another way in which the Chief Transformation Office is working on making our strategy viable for the future. I would like to touch upon 2 of these themes: client centricity and leadership, while my colleague Bernd would be talking about our approach to technology separately. You will also hear a lot more about our stance on sustainability from the leaders of our business areas, while you have already heard from Stuart Lewis about the risk management framework. We know that historically, Deutsche Bank has under leveraged its client base as we've been rather product oriented in our approach to clients. We said a year ago that we want to be more client-centric, which is easier said than done. As you will also hear from our business leaders in later presentations, over the past year, our intention has been to apply the same discipline to the execution of our client-centricity strategy as to other transformation initiatives. We have done a lot of work to improve our client centricity culture across the entire organization, both in the client-facing areas, as well as in the infrastructure. To support the evolution of this mindset, we have continued to develop a number of measures we can use to enable and make tangible improvements to our client centricity. First, we're enhancing our approach to client coverage. As example, by moving to a common client relationship management platform, Salesforce, that gives us a 360-degree view of our client relationships across the entire bank. Second, we're fostering better cross-divisional collaboration so that we meet more of our client needs from within the group. As we mentioned at last year's Investor Day, this is a very important lever for Deutsche Bank. Because even small steps in the right direction can deliver substantial returns. I'll come back to this in a moment. And finally, we're also improving our client analytics platform and gathering client feedback much more systematically so that we can learn from our client experiences. Coming back to cross divisional revenues. You may remember the left-hand side of this chart from last year's Investor Deep Dive. By driving new partnership ideas across our bank and focusing on a set of specific high-potential collaboration corridors between our businesses, we have a clear plan on how to add up to EUR 500 million of cross-divisional revenues by 2022. This also includes assigning new cross-divisional revenue targets across our businesses. So we are confident that by taking a consistent and structured approach to client centricity across the entire bank, we can leverage our client relationships much more effectively and achieve our 2022 revenue goals for the group. Turning to leadership. Our transformation is not just about the hard number captured by cost and revenue targets. Nothing can be achieved without taking our people along with us. We are investing systematically in the leadership capabilities and the development of our staff. As I mentioned earlier, we're also developing new ways of working, including new workspace models and agile work practices. Furthermore, it is our firm belief that diverse teams generate better ideas and reach more balanced decisions. We are, therefore, fostering a culture of diversity and inclusivity, and have action plans to improve representation of women and people from ethnic minority backgrounds in our recruitment and talent development processes. Our people are responding well to our transformation and how we are managing it right now. Results of this year's people survey are the best we have achieved in nearly a decade. As you have heard in earlier presentations, morale is markedly higher, and our employees feel empowered and respected. We are exceeding the peer benchmarks and are even starting to reach or beat the mark set by high-performing companies on several of these measures. So despite the challenges, we have a supportive and motivated workforce behind our transformation agenda. I hope you now have a better idea of how the Chief Transformation Office is fostering discipline and oversight around the delivery of our transformation agenda and also supporting the management agenda for the future. Relentless focus on execution will remain our top priority over the next years. Our transformation roadmap is delivering tangible results, and we keep us on track towards our 2022 goals and beyond. Thank you very much.

Another key part of what we see is different this time is in our approach to IT. More specifically, it lies in our new integrated approach to technology, data and innovation. To discuss this, I'll now hand over to Bernd Leukert who has created TDI since he joined us from SAP last year. Bernd will also begin to address another key question you've raised, namely, how can you upgrade your technology while cutting costs?

Hello. I joined Deutsche Bank in 2019 to transform its technology capabilities. Previously, I was the lead engineer for SAP, responsible for product development and innovation. Over the next 10 minutes, I will tell you about our exciting technology journey and how we are supporting our transformation and the management agenda Christian has alluded to earlier. The technology data and innovation story is about how we can, first, operate stable and secure systems; second, reduce costs; and third, invest in modernizing our technology. These sound like conflicting objectives, but we have key principles in place to help such as creating one technology, data and innovation unit. We are more focused on where we invest, and we have been bold in our strategic partnership with Google. We change the understanding of tech from a cost line to a business enabler. Let me explain why one technology, data and innovation unit makes sense and why it centers around the concept of one. The concept of one is about taking a unified approach to technology, data and innovation and applying it in every division of Deutsche Bank. Previously, these areas sat in various divisions. resulting in duplication and complexity in the IT landscape. Simplifying our technology environment reduces costs, reduces complexity. and makes us more effective in serving clients. Our TDI principles are already helping deliver our transformation agenda, as you can see on the next slide. We migrated to a new core bank platform in Italy. We prepared our equities applications for the Prime Finance transfer to BNP Paribas. We announced the sale of Postbank Systems, and we signed a multiyear partnership with Google Cloud. A new era for Deutsche Bank in technology has started. TDIs principles are also clearly aligned to that management agenda. As our systems and technology infrastructure underpin our entire business, they must remain resilient, stable and secure. We will become more efficient by applying the concept of one to streamline our technology estate, and TDI must partner with the businesses to deliver the technology solutions that will help us to support clients and grow our revenues. Ultimately, technology, data and innovation is key to the transformation of Deutsche Bank. Our systems have proven to be stable while handling an impressive amount of data and more than 25 million payment transactions each day. Our systems have proven to be secure with our technology protecting us against many thousands of cyber-attacks each day. Despite the challenges that the pandemic presented to our system stability, it remained close to 100%. Our systems continue to function well through periods of huge additional volumes being the enabler for a robust business year-to-date. And we rapidly enable the workforce to work from home, with 70,000 employees concurrently accessing the system, the basis for the great performance year-to-date. As well as keeping the bank up and running, TDI plays a major role in reaching the bank's cost reduction targets, as you can see on Slide 6. We have demonstrated this already in 2020. Technology, data and innovation has committed to deliver EUR 1 billion in cost reductions by the end of 2022. A question we hear a lot is how can you invest while reducing costs? And the answer is by simplifying our existing infrastructure. especially by consolidating our German retail IT platforms and further reducing complexity with our -- within our investment bank platform, while focusing our investments on very specific areas that will add the most value to the bank. We also continue to improve our control environment, and this includes solutions such as the transition to historical simulation for Monte Carlo, which supports our conservative risk management, as Stuart described it earlier. I will go through these 3 important levers on the next slides. Starting with the simplification of our data and application landscape, we are rigorously decommissioning applications. In 2020, we have increased our efforts to retire duplicated or outdated applications. In total, the applications planned to be decommissioned by end of 2022, should deliver over 100 million -- EUR 150 million of annual cost savings going forward, EUR 25 million annualized already achieved this year. This includes close to 20% of all applications in the investment bank, as Ram will highlight later. It does not include benefits from the German retail banking IT integration, which I will continue to outline shortly. In addition, we will develop increasingly standardized applications that can be used across the bank, not just in 1 business. A bank relies on its data, and we are working to harmonize our data into a single source of truth across the whole bank. And we will take advantage of cloud technology to standardize, to streamline and trace the flow of data across the bank. This will improve data quality, reduce manual checks and allow us to further automate processes. We are focused on creating 1 end-to-end platform in Germany, as you can see on Slide 8. The Postbank platform and its 12 million clients are being migrated onto the Deutsche Bank infrastructure. We are leveraging the experience from other successful migrations, most recently in Italy. And in addition, we built on the opportunities created by the Google partnership. For the customer front end, simplifying end user and customer interaction, and we are now making good progress. In 2020, we have completed all product and process gap analysis, defined the joint target platform and started the implementation work required on the Deutsche Bank platform. In 2021, we will complete the system upgrades and future developments in the single Deutsche Bank platform. And at the same time, we will conduct the rigorous testing that complex migrations require to ensure a safe and seamless transition for customers. We will then execute the migration in 2022 in waves, completing the process before the end of that year. Our renewed integration approach will require around EUR 200 million additional investments in 2022, which is incorporated into our updated financial plans and targets. Finally, decommissioning of the legacy infrastructure will be moved by 6 months into 2023 because of 2 reasons. Firstly, we want to be conservative and ensure absolute system resilience in such a significant IT migration. And second, we believe this approach, combined with the sale of Postbank System to TCS, minimizes the risk of having remaining stranded costs, broadening our expense base from 2023 onwards. And the partnership with Google will help us build a modernized front-end with integrated innovative offerings for our clients. Karl will provide further details in his presentation. To enable our transformation, we must grow our engineering capabilities as outlined on Slide 9. We want over half of our technology data and innovation workforce to be engineers by 2022. By bringing technological expertise in-house, we are reducing our reliance on outsourcing. Top quality engineers are in high demand, so I am pleased to have seen a halo effect in the quality of applicants since we announced our Google partnership, which I will talk about on the next slide. I think most people understand the benefit of cloud for any bank, improving elasticity, service levels, time to market, while paying compute, storage and network as a service. But let me stress, this is a true partnership, not an outsourcing relationship. This type of technology partnership is rare and the first of its kind in financial services. We are Google's primary strategic partner in the financial sector. The partnership means we can take ideas from concept to market much faster and respond more quickly to the most pressing client needs and trends and we will have access to genuinely best-in-class technology, such as artificial intelligence and advanced data analytics. Our incentives are aligned to make this partnership a success. Let me give you some examples. We will jointly recruit engineers to codevelop new products for our clients, publish financial service applications on their marketplace, and we intend to selectively co-invest in start-ups and fintechs that will enhance our client offering. So I'm delighted to introduce Rob Enslin, President Google Cloud, who has the following to say about our partnership.

Thank you, Bernd, for inviting me to say a few words today. We are truly excited to start our strategic partnership with Deutsche Bank, an industry pioneer with a long history of innovation in financial services. We've seen a high level of integrity and commitment from Deutsche Bank's leadership, which has to exist if a partnership of this scale is to succeed. But we've also seen technology talent that would thrive in any technology company and we've seen exciting opportunities for colleagues from both companies to work side by side and learn from each other. Now the hard work begins. We've been working together for months and are ready to be part of the bank's transformation journey which has already made huge strides. We're committed to helping Deutsche Bank modernize its technology, safeguard it's data and information and respond quickly and accurately to evolving client needs. We've already formed a number of ideas that'll improve the experience, whether you're a treasurer looking to manage risk, a retail consumer looking for ease of interaction or a corporate customer looking for new financial solutions. We are looking forward to the journey ahead with Deutsche Bank and creating something special within in the financial services industry. And with that, I'd like to hand back to Bernd.

[Presentation] There are many great opportunities ahead with Google, but I want to show you some of the ways in which we are already using technology to build a more client-centric business on Slide 12. This ranges from fast solutions. For example, we launched a new online application form for KfW loan support in Germany in just 10 days during the first wave of COVID to more complex solutions. For example, our integrated currency exchange solutions, FX4Cash, provided by our Autobahn platform to treasurers. Moreover, we are developing new digital ecosystems which connect our clients to a broader range of products from third-party suppliers. With our future offering, we strive to become part of the business models of our clients by providing services that seamlessly integrate into their systems. In summary, the one TDI approach is driving a simplified, integrated modern technology infrastructure across Deutsche Bank. In 2020, we have sharpened our strategic priorities against, which we are executing and we have launched 3 meaningful initiatives: firstly, simplifying IT landscape footprint with consolidating IT retail platforms and reduction in equities and fixed income. Secondly, consuming cloud infrastructure and modern state-of-the-art technologies like artificial intelligence or machine learning and reducing our own technology footprint. And thirdly, co-innovation in tech partnership with Google to reinvent Deutsche Bank's core business, providing banking solutions to corporate and private clients. We will further invest in technology to gain efficiencies and unlock future growth. Thank you.

Thanks, Bernd. Let us now turn to your questions. We've got a lot of people to get through, so please try and limit it to just 2 questions per person.

First one, is from Jernej, and it's coming through Zoom.

So now I can be sure that this is not prerecorded given that you've stated my name as well. James, I'm going to be -- for a change, I'm going to be really brief. I have 2 questions. The first one is in the CFO presentation, and I think you very helpfully provided, on Page 8, how you expect the costs to evolve for next year and the year after and the year after that. I was just wondering if you could help us understand the dynamics of the revenue changes as well, so on Page 5. And I understand you can't provide us with an annual target, but what is the timing of the phasing of these different moving parts that you show us here? And then the second question is on Page 10 of the CEO presentation. And I think you make multiple allusions to regaining market share. And I was just wondering where do you think or who, rather, do you think you are regaining market share from.

So Jernej, it's James. Thank you for your questions. And maybe we have you hold up a newspaper so that you can prove to the world that this part is not recorded. Look, the revenue walk is essentially, I would call it, flat for a period of time in Corporate and Private Bank and then sloping upwards. And the driver there is the lapsing, if you like, of the interest rate headwinds that we talked about. We have about a little over half of that $1.2 billion, so it's ratable or it's more than ratable into '21 still to get through, but that starts to lift then in '22. In the investment bank, as we've talked about, of course, next year will be a step down from the extremely favorable conditions this year in 2020. So I see it at a group level as a step back and then a steady climb to the levels that we outlined in our presentations.

On the market share, I would say actually that this focused approach, which we have given ourselves in the Investment Bank is now really paying off. For instance, in O&A, we have seen now the highest market share over the last 6 quarters, and it's building up kind of quarter-by-quarter where we see that the focus which we have given ourselves being in certain industry sectors, but also which we are doing in debt capital markets in LDCM. This focused approach is now building up, and this gives us also the right foundation for our belief that a good part, and Ram and Mark will actually go in detail in that later on in their presentations. But that a good part of that is sustainable revenues in '21 and '22. In the European -- in the trading business, in particular, in the European rates business, we are gaining market share. The third quarter, I think, was a testament that also there, the focus on rates, the focus on the FX business, the management changes we have also done in emerging markets last year in September and October, are all now coming out and playing to our strengths. So I always used to say, and you know that, at the first -- at the start, I said I'm not that much looking on market share. We are running our own race. And that was really in regaining the franchise, regaining clients' engagement, and that is exactly happening. And now we can even see that this starts to be in also winning market shares. And hence, it's an overall very promising development, which we have seen, and again, with the high sustainability of underlying revenues.

Thank you, Jernej. So now we're going to take one of the questions from the chats, which has come in, I think, from lots of you and focused in lots of the analyst reports that we've seen. This one, Christian, is to you. What are you doing to ensure that the corporate bank and the private bank remain on track, and you're not just relying on the investment bank for your returns?

Well, thank you very much. I completely understand that question, but to be very honest, the corporate bank and the private bank is on track. Because what we have to see is the underlying growth in both businesses. And we always talk about the strengths and the good performance in the Investment Bank. And we are proud of that, what we have achieved there. But it makes me equally proud what we achieved in the corporate bank and in the private bank. They had more headwinds because of the interest rates. And with mitigating actions like in the Corporate Bank, I remember as you that we were sitting here last year, exactly here, and we were talking about passing on the negative interest rates to our corporate clients. Now we have done it to more than EUR 70 billion of deposits. That actually compensated a lot for the interest rate headwinds, increase in payment business, growth in loans in the private bank. So actually, both units are hitting the internal plan, which we established pre-COVID. And if we continue that development, this underlying development, then we will be there with our revenue target in 2022. [Audio Gap]

Hello, and good afternoon. My name is Karl von Rohr and at Deutsche's Management Board, I'm in charge of the Private Bank. The last year has been exceptional for us in many respects. We faced the toughest interest rate environment Europe has seen for decades, and we have coped with the challenges that COVID has brought to our societies and economies. In all this, we've remained close to our clients, and we have delivered on our strategic priorities. Today, my colleague, Claudio de Sanctis and I will talk you through the commitments we gave you last year. How we are successfully implementing cost reduction measures and becoming more efficient, how we are capitalizing on the strength of our advisory capabilities to grow fee and commission income. And how the execution of our cost and revenue objectives will result in a RoTE of 8% to 9%, putting us on a path to higher returns in the future. Slide 2 gives a summary of the Private Bank, which is made up of our 2 businesses, the Private Bank Germany and the International Private Bank. We account for 1/3 of the group's revenues, around half of its staff and we serve about 22 million clients in over 60 countries globally. We have nearly EUR 0.5 trillion of assets under management and nearly EUR 0.25 trillion in loan. We're the #1 bank for private clients in Germany, operating through the Deutsche Bank and Postbank brands. These businesses account for almost 2/3 of the total Private Bank revenues. The International Private Bank which we created in the summer by combining our Wealth Management and Private and Commercial business international units accounts for just over 1/3 of our revenues. Since we met last year, we've made substantial progress in our strategic agenda, as you can see on Slide 3. We met all the objectives we promised last year, despite the unexpected operational challenges we faced from COVID, and we've made substantial progress beyond them. We've accelerated the integration of Deutsche Bank and Postbank in Germany, and we have consolidated some of our central and head office function. We've also agreed balances of interest with our employee representative, which will allow us to further rationalize our head office and operations in Germany. We're also making progress to offset the interest rate headwinds. By increasing account fees and other repricing initiatives, we've achieved EUR 100 million uplift this year. We've also successfully grown client volume, with EUR 20 billion of net new loans and flows to assets under management, in the first 9 months of the year. Converting deposits to investment products is helping us grow the share of revenues we earn from fee and commission income. We've also made progress in our international transformation, creating the IPB and delivering a full system migration in Italy in the midst of the first wave of COVID. The related restructuring is in the final stage of negotiations with the employee representatives, and we're confident will reach agreement by year-end. These operational achievements have translated into our financial performance in the first 9 months of 2020, as you can see on Slide 4. The combination of volume growth and higher fee income allowed us to broadly offset more than EUR 400 million of headwinds that we face from interest rates and reduced business activity in the peak months of COVID-19. Commission and fee income grew by 6%. We reduced costs by 5% and are on track to deliver around EUR 400 million of cost reduction this year, thus creating operating leverage. On Slide 5, you can see the adjustments we've made to our revenue and cost targets. This is the result of 2 factors. First, as James von Moltke alluded to, lower for longer flattened yield curves have forced us to reduce our 2019 to 2022 revenue growth ambitions to 1%. We're working hard to make up for the shortfall but it simply won't be possible to fully offset these headwinds by 2022. Second, as Bernd Leukert explained, the decommissioning of legacy Postbank systems will be moved by 6 months into 2023. To ensure system resilience, we plan with around EUR 200 million additional investments in 2022 to successfully complete our IT migration to a single platform in Germany by year-end 2022. The realization of the full benefits will not only come through after 2022. I will talk about this in more detail later. Slide 6 shows you the drivers that will improve our profitability. First, we will continue to execute on our cost reduction plans that other than the impact from the IT migration, remained unchanged. Across the Private Bank, we expect to lower adjusted costs by EUR 800 million from 2020 to 2022 in addition to the EUR 400 million delivered in 2020. Of these EUR 800 million, EUR 400 million will come from Germany. As my colleagues Bernd Leukert and Fabrizio Campelli laid out, we're working closely together on our German platform integration, leveraging the experience of TDI and the Chief Transformation Office. Around EUR 300 million cost reductions will come from the IPB, which Claudio will detail shortly, and we will implement EUR 100 million of structural measures. Second, we will grow our revenues. Our business model is well suited to helping clients preserve wealth, a core driver of the strategy that Christian outlined earlier. So we will leverage our advisory capability to grow assets and loans under management by more than EUR 30 billion next year. We'll also capitalize on the growing demand for sustainable investments by partnering with DWS to develop ESG solutions, and we're embedding ESG targets into our performance management. Overall, we expect these actions to enable revenue growth of 2% CAGR between now and 2022. Let me revisit the slide we showed you last year, showing the path to improved profitability. We will continue to be affected by COVID and the challenging economic outlook we didn't expect last year. I've already elaborated on how we're responding to pressure on revenues to offset lower rates by not only growing our loan book, but primarily by focusing on higher fee and commission income. The cost drivers I outlined will deliver most of the improvement to our profitability. We continue to manage our lending standards very conservatively. As a result, we expect our RoTE to be at around 8% to 9% in 2022 on a path to a higher return beyond that. I will now hand over to Claudio. And Claudio will talk about the progress in the International Private Bank. Claudio, over to you.

Thank you, Karl. It's a pleasure to be here. I'm excited today to introduce you our new International Private Bank. Our vision is to be the house of choice for family entrepreneurs globally. And we are uniquely positioned to provide these family entrepreneurs with a one-stop solution for all of their private and company needs, both on the asset and on the liability side. It will be also my pleasure today to show you the progress we made since we last met and explain you how we will produce sustainable, profitable growth over the next 2 years. Let's have a closer look at our International Private Bank. Our scalable core business is in Continental Europe, but we also have a profitable, fast-growing franchise in Asia and in the Middle East, which accounts for over 1/4 of our revenues and we also operate one of the leading ultra-high net-worth franchises in the United States. In Personal Banking, we have around 3 million clients, primarily in Italy and Spain, acting as a feeder to Private Banking and Wealth Management. On top of being a global Wealth Management franchise, we benefit from competitive scale. We have almost EUR 0.5 trillion of client business volume, which in 2019, generated over EUR 3 billion in revenues. With over 2/3 generated in our Private Banking and Wealth Management businesses. So let me explain you why we created the International Private Bank. We were driven by several strategic opportunities. The most prominent and immediate was the merger of the Wealth Management and Private Banking activities. Bringing these businesses together gave us some quick wins on cost by combining platforms, products, operations and management. For example, we reduced the number of product functions from 7 to 3. We reduced 50% of the senior executive positions, and we merged our central, product and infrastructure teams. From a revenue perspective, this merger allows us to leverage Wealth Management products for Private Banking clients. For example, deploying Well Management lending services to the whole franchise in Belgium. The next step will be to unlock further potential by more closely aligning our Wealth Management and SME businesses banking offerings, starting in Italy and Spain. The personal wealth and the business interest of these families are often very closely interdependent. And our approach to holistically cover entrepreneurs' private and commercial needs is a competitive differentiator. And finally, our retail banking franchise has an appealing brand for the affluent client segment, and we're located in the key affluent regions within our markets. Let me focus now on how we differentiate ourselves in our segment strategy. Firstly, with the creation of the IPB, we are best positioned to fulfill the needs of family entrepreneurs, certainly as the house of choice in Europe, but also globally when there are European connectivities. By delivering our combined Wealth Management and business banking services, from an early stage, we can accompany these family entrepreneurs as they move from small to medium caps. And then we can accompany them further as they grow from medium to large cap by providing access to all of the services of our Corporate Bank and Investment Bank. And this is not just a theoretical strategy. We are already doing this with many of our clients. To give you an example, we accompanied this Italian SME relationship into Wealth Management and now more broadly across the bank. And by doing so, we have been able to triple the revenues over just a few years. In fact, when I took over IPB, I was surprised by the set of capabilities DB has to serve SME family entrepreneurs, particularly in Southern Europe. It is the first time in 20 years of industry experience that I have such a complete offering for this segment. Secondly, we aim to globally be the preferred investment partner for sophisticated ultra-high net worth and high net-worth families. To these counterparties, we offer industry-leading products such a strategic asset location, we provide solution to their most complex lending needs and provide full access to our Investment Banking solution in Fixed Income and FX, which are the primary needs for most ultra-high net-worth families. And lastly, we have an appealing premium brand in Europe for affluent clients and aim to capture a larger share of their financial needs as well as maintain this important pipeline for Private Banking. Now let me show you the progress we made since we met last year. In Wealth Management, we delivered positive jaws year-on-year, with revenues up 3% and adjusted costs down 7%, both better than peer group average. The revenue outperformance was driven by investing in more relationship managers, which contributed to a near threefold increase in net flows in investment products. As promised, we also launched our Strategic Asset Allocation with over 2,400 mandates signed in Wealth Management since May. On the cost front, our focus on entrepreneurial families simplified our product offering and reduced complexity in the support function, resulting in a 12% reduction in nonrevenue-generating staff. In PCBI, despite headwinds from COVID and the interest rate environment, revenues remain more resilient than many of our peers. Adjusted costs were flat compared to last year as we finalized stringent cost measures since the creation of IPB, some of which were delayed by COVID, but which are now in implementation. As I already said, our Asia and U.S. franchises continue on their path of sustainable growth. But the most pronounced momentum was in Wealth Management Europe, including Germany, where we grew ahead of our peers after the turnaround effort of the last few years. Now we aim to replicate the same results by putting the scale to work in the broader European IPB franchise, whilst continuing to invest in Asia and in the U.S. Now let's turn our attention to our plans for '21, '22. Our ambition is to keep delivering positive jaws, increasing our revenues on average by 5% per year, whilst reducing cost by a further EUR 300 million by 2022. Our 5% revenue target is net of weaker interest rate environment, market headwinds and FX movements. So excluding these factors, the underlying growth rate would be 8%. As already outlined, this revenue growth will be driven by our focus on entrepreneurial families but also through our continued conversion of deposits and noninvested assets into investment solutions. I outlined last year how we believe the simplicity, low cost and performance of our new Strategic Asset Allocation mandates are redefining the wealth management industry. We will now roll out SAA to the whole domestic client base in Italy and Spain and Belgium. And we will also launch an ESG version of the SAA early next year. In fact, in terms of ESG, we plan to integrate ESG criteria in all of our investment processes, in line with the values of Deutsche Bank. Turning now to our cost. If you look at the next 2 years, we intend to achieve all of this whilst reducing costs by at least EUR 300 million. And this is net of strategic investments, which are key to supporting our growth. We will continue to focus the combined businesses towards our target client segments. For example, we will reposition the branch network to focus on our wealth, entrepreneurial families and affluent clients. And aim to close a further 60 branches by 2022. We are also continuing to invest into platform digitalization as well as rolling out the agile way of working to further reduce IT cost. To conclude, I hope that I've been able to show you at least a glimpse of the potential of the International Private Bank. We are well on the way to becoming the house of choice for family entrepreneurs. We have demonstrated that we deliver against our objectives, and we have a clear, focused plan in our control to drive sustainable, profitable growth. Thank you very much, and back to you, Karl.

Well, thank you very much, Claudio. And let us now turn to the Private Bank in Germany. To recap, we're the leading retail bank in Germany with 2 very complementary brands: Deutsche Bank and Postbank. We have a genuinely nationwide presence with currently 1,300 branches, a broad self-service network as well as a comprehensive digital offering. Our 2 brands serve around 19 million clients and almost half of them also bank with us online. Our revenues are well diversified. Given the interest rate headwinds, we're capitalizing on our investment advisory capabilities to shift our revenues more rapidly towards commission income. We can see on the next slide that this strategy has been working in the first 9 months of this year. The Private Bank in Germany generated operating leverage of 4%, better than our major European retail banking peers. We achieved this result by delivering against both our revenue and our cost priorities. We held revenues broadly stable with good growth in assets under management and lending. Converting deposits into investments and repricing continued to good growth in fee and commission income of 7%. Adjusted costs declined by 5% and following the completion of the legal merger of our Deutsche and Postbank brands, we've consolidated our head offices, central functions and operations. This includes reducing our operations headcount by 10%, with further consolidation to take place in the next 2 years. Our cost reduction measures will be supported by the recently announced sale of Postbank Systems AG to Tata Consultancy Services with around 1,500 employees becoming part of TCS. Looking ahead, we're very much aligning our strategy closely to market trends. The German market, despite heavy competition, does present opportunities. Germany has a strong and stable economy, a strong savings culture, good loan growth and low loan loss rates. We have a well-established financial services sector, but rapidly changing customer behavior is driving fundamental changes to our distribution model gradually away from branches and towards digital solutions. So the future will favor those with advisory capability to help clients protect their wealth with product innovation to address the opportunities from sustainable investment needs and those with scale, and with the determination to adapt to this new landscape. These trends play to our strength and our strategy. We're well placed to capitalize on the wealth preservation trend and grow our advisory business. We have an established brand, a network of over 4,000 highly qualified and motivated advisers and a broad product and service range that increasingly covers the ESG spectrum. We have strong partnerships with DWS and with the insurers, Zurich and Talanx, with whom we have recently extended our relationship. We're well placed to grow our lending portfolio, of course, prudently, through our over 3,000 specialist mortgage advisers. On the cost side, we're realizing synergies from our German integration by consolidating our central functions, reducing overhead and personnel. The integration of our systems onto a single platform is in train, and we're continuing to rebalance from branches and self-service infrastructure towards digital delivery. Let's now look in more detail at the revenue and the cost numbers. Over the next 2 years, we expect to keep revenues broadly flat as our growth will offset the interest rate headwinds. We're targeting loan growth of around 6% per annum. To grow the advisory business, we are targeting the further conversion of some EUR 7 billion of deposits into investment products. We will convert EUR 3 billion this year. So this is an achievable target and will get us to the EUR 10 billion we promised last year. And it will be one aspect of increasing the share of our revenue from commissions. To support this, we will upskill up to 200 of our people to become financial advisers. With ESG becoming much more relevant in our client investment decisions, we'll work with our product partners to expand our ESG offering ranging from an ESG portfolio screening to offering sustainable products mirroring classical products. We'll also increase fee income by repricing certain accounts and services. For example, we recently introduced account management fees for all new clients with deposits over EUR 100,000, and we will extend this to existing clients over EUR 100,000 starting January 1, 2021. In our digital offering, we'll include our full range of products, and these will be fully purchasable online, thanks to our automated end-to-end processes. As Christian said in his presentation, our best-in-class mobile banking app will play an increasingly crucial role. We record steadily increasing visits, and we reached an average level of more than 20 log-ins per user and per month. The app will become our main access channel with improved functionality. As an example, we plan to bundle our digital investment offering, like our online broker, maxblue or our robo adviser, ROBIN and our deposit platform, ZinsMarkt, to create a convenient and integrated service to people wanting to invest money. So we know headwinds are there, but we have a path and most importantly, we have a highly motivated and highly qualified sales organization that wants to compete and that wants to grow further. Let us now look in more detail at our German retail platform integration. This is a major project, which we are managing together with our Technology, Data and Innovation department, as Bernd outlined in his presentation. We're migrating the Postbank platform and it's 12 million clients onto the Deutsche Bank infrastructure, also to build on the opportunities created by our Google partnership. The timing of decommissioning of applications is now 6 months later than we originally anticipated. Even on the revised timeline, the benefits of this project are significant on both costs and revenues. On revenues, the partnership with Google will help us build a modernized front end with integrated innovative offerings. On costs, we will benefit from running one platform instead of 2. Also, we will simplify processes, further downsize operations and achieve a higher flexibility through a modular architecture and lower costs through cloud transformation. From 2023 onwards, as the investments end, we will begin to generate significant net cost savings, reaching the full run rate of EUR 300 million by 2024. The sale of Postbank Systems to TCS will also minimize the risk of having remaining stranded costs burdening our expense base. The cost savings and the slightly higher investments are incorporated into our updated cost targets, which I will detail on the following slide. Turning to our other cost-reduction measures. If you include the higher cost of the IT integration, we're well underway to achieving the envisaged cost savings with EUR 400 million delivered in 2020. We continue to focus on the strategic priorities we presented last year, that's operations, our distribution network and central functions and we're in full implementation mode. We're consolidating and harmonizing our operations, automating back office and customer processes. We expect to process more than 90% of our paperwork digitally by 2022. The second area, where we're continuing to tackle costs is our distribution network. In Germany, branches across the banking sector reduced by on average 17% between 2016 and 2019, for Deutsche Bank and Postbank, branches reduced by almost 30%. So we have addressed this already for quite a while, and we won't stop. As more clients moved online during COVID, we announced that we would close a further 200 branches, evenly split between our 2 brands. We're also consolidating our self-service infrastructure, and we will reduce our self-service footprint by about 10%. These changes to our distribution network will deliver EUR 100 million in savings by 2022. Our final focus is on further reducing the cost of our central areas, while we've been operating 2 head offices and many other duplicated functions. We have agreed balances of interest with the workers council for our head office and operations units that will allow us to reduce our population by around 40% and 30%, respectively. Savings in our real estate costs will further enhance these reductions as much higher degree of flexibility becomes the norm following the pandemic. So on the cost side, like on the revenue side, you see us determined to do what needs to be done, with important progress with our employee representatives and in full execution mode. Now let me conclude Claudio's and my session for the Private Bank. Despite some of the headwinds we're facing and building on and encouraged by the progress we're making in our transformation, we firmly believe that Private Bank will achieve a 2022 RoTE of 8% to 9%. We'll do that by continuing to rigorously execute our cost efficiency program with discipline. And by capitalizing on the growth opportunities we've outlined in Germany and in the International Private Bank. We have taken very fundamental decisions. We're supported by a strong and determined management team, and we have highly qualified and motivated staff that wants this organization to succeed. Thank you very much.

Welcome to the Corporate Bank Investor deep dive. My name is Stefan Hoops, and I've led the Corporate Bank since 2019. I joined Deutsche Bank as a graduate and have previously held a number of roles in Markets, Corporate Finance and Global Transaction Banking. 2020 has been a challenging year for all of us. But despite COVID-19, we've mitigated the headwinds in the Corporate Bank by executing on our strategic initiatives. As a result, we were able to keep revenues stable year-on-year, which is an outperformance versus the market. In particular, we've worked hard to manage the interest rate environment, and our credit loss provisions remain low relative to peers. This reflects a well-diversified loan portfolio with strict lending standards, strong risk management and robust controls. Traditional Corporate Banking is at the very heart of our business. And our core franchise has shown resilience in 2020, especially in Germany. But to maintain our strength in traditional Corporate Banking, we also have to play a role in shaping the future of financial services. So we're making targeted investments in specific growth areas where we have a clear competitive advantage. You will hear more today about the opportunities we see to do this. So let me start with a brief overview of the business. The Corporate Bank comprises both Global Transaction Banking and Commercial Banking. But from 2021, we'll be reporting on the basis of 3 client-focused segments, reflecting our client-centric approach. To be clear, this does not require any reorganization. I will talk about these client segments in order of size. First, Corporate Treasury services, which is about 60% of the business. Our capabilities in cash management and foreign exchange places us at the center of our corporate clients' business. Trade Finance and Lending is the business that Deutsche Bank was originally set up for, which is why we have a long-standing global network across 151 countries. Revenues in this segment grew 1% in the first 9 months, as we largely offset interest rate headwinds by deposit repricing, balance sheet management and ECB tiering. The Corporate & Investment Bank have a joint treasury coverage team that sits in the Corporate Bank. If you combine growth of 1% in the Corporate Bank, with foreign exchange and debt capital markets revenues reported in the Investment Bank, it is clear that Deutsche Bank has a very strong corporate franchise. Second is institutional client services, which represents about 1/4 of our revenue base. This includes institutional cash management, where we are will be #1 in euro clearing and one of very few banks, strong in both euro and dollar clearing. We think we can do far more here. Trust and Agency services, which is a niche business, growing in mid-single digits providing specialized services to financial institutions. And Securities Services where we are one of just 2 pure-play subcustodians, which makes us an ideal partner, especially in Asia. Revenues in this segment are down 7% year-on-year, mostly as a result of declining interest rates in the U.S. and Asia Pacific, where our ability to offset this is more limited. Third comes business banking in Germany, which is about 15% of our revenues. Here, we serve 800,000 clients, including small businesses, tradesmen, lawyers, doctors and the self-employed, across 3 brands: Deutsche Bank, Postbank and our digital bank, FYRST, which was launched last year. These are clients who have historically been underserved, but with the advance of digital technology, we see this as a strategic growth opportunity, which I'll talk about later. Revenues in business banking were up 1% in the first 9 months, supported by both volume and fee growth. You may remember that last year, I told you, we are less sensitive to the interest rate environment than you might think. Overall, about 40% of 2020 revenues are fee-based. We earn fees in Institutional Cash Management, Trust and Agency services, Security Services and Trade Finance. The remaining revenues are net interest income. This includes negative interest rates passed on to clients. The majority of our net interest income relates to the spreads we earn on lending rather than the underlying interest rate and just about 15% of the total is generated from deposits. As a result, we are less dependent on the level of interest rates than our peers. This is one of the reasons we have outperformed the market in a declining interest rate environment. As I said earlier, we also have lower credit loss provisions than our peers due to a well-diversified loan book and strong risk management. During the year, we have been disciplined in executing on the objectives we set out last December. So let me update you on the progress we have made. We told you last year that we had identified EUR 25 billion of deposits we would reprice in 2020 in order to pass on negative interest rates. In fact, we've rolled our new charging agreements on more than EUR 40 billion of deposits, well above our target. This brings the total over this year and last to about EUR 70 billion. Based on our third quarter run rate, we expect this to generate additional revenues of more than EUR 200 million on an annualized basis. Our second growth driver was payments where we said we would double the fees we generate from fintechs and e-commerce to EUR 200 million over the next 3 years. We are on track to meet our targets, having grown payment revenues 18% in the first 9 months. Our investment here was well timed as we are benefiting from a significant increase in online payments as a result of COVID-19. Third, we set out our ambition to be the bank of choice for corporate treasurers. In particular, we aim to increase rates and foreign exchange revenues with our corporate clients by 5% to 7% per annum. And to deliver 3 pay per use or Asset-as-a-Service projects in the first half of 2020. Foreign exchange and rates revenues were up 16% in the first 9 months, with strong growth in the U.S. and Asia Pacific. We've also completed several pay-per-use pilots and rollout is ongoing. I'll talk more about this later. Finally, we said we plan to grow our revenues in Asia Pacific by 6% per annum. And I can confirm that we have grown revenues 6% despite declining interest rates in the region. We've continued to invest in people and technology, and we are benefiting from our combined FIC and Corporate Banking business in Asia Pacific, as well as our integrated markets and transaction banking platform, which offers treasurers solutions to manage payments, liquidity and foreign exchange, yet despite our disciplined execution and all our efforts, our return on tangible equity is not where we would like it to be. There are 3 main factors that explain our return of 4% for the first 9 months of 2020. First, we've experienced interest rate headwinds amounting to EUR 400 million or 8% of our annual revenue. So whilst we have been able to maintain stable revenues as a result of deposit repricing, we did not grow them. Second, as James has mentioned in his quarterly updates, the bank has changed its cost allocation methodology, which has resulted in higher allocations for the Corporate Bank. This is in line with what we announced last year, and these costs will reduce over the next couple of years. Third, our credit loss provisions in 2020 are higher than expected as a result of the pandemic. So why am I still comfortable with our return target of 11% to 12%? With the exception of lending, our business lines do not consume a lot of capital, so even slight increases in revenue or cost reductions will have a significant impact on returns. As James outlined, there has been a necessary recalibration of our targets, given the change in macroeconomic outlook. We now plan to grow revenues at a lower rate, resulting in a 2-percentage-point uplift and to reduce costs at a higher rate, increasing returns by 4 percentage points. In addition, we expect credit loss provisions to normalize in the coming years as the economy recovers, which will add another percentage point. So let me give you more detail on the revenue and cost drivers that will help us achieve our return target. Our plan is to grow revenue at a rate of 4% per annum to EUR 5.5 billion by 2022. We've broken our key revenue drivers into 3 categories. The first category covers measures which are within our control. They simply rely on disciplined execution. This includes continued repricing of deposits in order to offset the impact of interest rates, ongoing implementation of account fees in Germany and increasing fees in Security Services. The second category covers ongoing implementation of initiatives where we have already made real progress. We consider these to be highly deliverable. I told you last year, we want to be the bank of choice for corporate treasurers and to build on our strength in Germany. Within this, we see an opportunity to better serve small German businesses in our business banking segment, as I mentioned earlier. This category also includes our continued focus on growth in Asia Pacific. And our commitment to double payment fees from e-commerce, platforms and fintechs. The third category covers targeted investment in growth areas. These initiatives are not as well established as category B, but all of them address a market opportunity where we have a competitive advantage. This includes Asset-as-a-Service, a new merchant payment offering, and advising our clients on their ESG transformation. The total impact of all these measures amounts to EUR 500 million over the next 2 years, but this will be partially offset by interest rate headwinds, which explains our target of EUR 5.5 billion. I want to talk about these drivers in more depth, starting with our ambition to be the bank of choice for the corporate treasurer. Put yourself in the shoes of the corporate treasurer and imagine what their year has been like. For many, it has been career defining given the challenges they face. Being by their side and helping them to meet these challenges has further deepened our relationships. So this is how we're helping them. The first challenge is managing liquidity. For those who need more liquidity, we provide lending or help with issuing bonds. For those with too much liquidity, who want to keep cash, we pass on market rates in multiple currencies, or we offer the option to move surplus liquidity into money market funds in DWS. This activity falls within category A, and relies on disciplined execution. Treasurers also have to secure their supply chains and distribution channels around the world. Our global network across 151 countries and local presence in 42, combined with our strength in supply chain financing, make us an ideal partner to help clients navigate these challenges. Then they have to manage risk in relation to interest rates and foreign exchange. It's been a busy year as corporates have had to adjust their cash flow hedges or provide their subsidiaries with funding. Cash flow forecasting is likely to remain difficult until there's greater certainty about when vaccines will make further lockdowns unnecessary. And as different parts of the world are recovering at different speeds, it's likely that exchange rate volatility will continue at elevated levels. These last 2 areas fall within the category of business strategy implementation, which is very much a continuation of what we already do. Lastly, we're helping clients manage an accelerating trend where they offer their customers Asset-as-a-Service rather than selling them products. Before the pandemic, this was typically used as a means for manufacturers to get closer to the end customer. Take the example of printer manufacturers. They also want to sell ink and paper to have an ongoing relationship with the businesses that buy their printers. During the pandemic, however, providing a service has become more attractive than selling goods for another reason. It helps end customers to reduce their capital expenditure and preserve liquidity. So manufacturer moves from selling printers to selling printing as a service so their customers can turn CapEx into OpEx. The challenge for the manufacturer is that the printers cannot just sit on their own balance sheet. So the company needs support through a combination of structuring, payment processing and risk management solutions. Since we spoke last year, Asset-as-a-Service or pay per use has become a new business line within the corporate bank to take advantage of this opportunity. This is an area where we are clearly benefiting from our partnership with Google Cloud. As you heard from our Chief Technology Officer, Bernd Leukert, this partnership enables us to combine Google's expertise in data science, artificial intelligence and machine learning with our expertise in financial products. So let me now turn to the backbone of our business, the Corporate Bank in Germany. We serve more than 900,000 clients in 120 locations across Germany, delivering almost half the Corporate Bank's total revenue. This makes us the leading corporate bank in Germany, and we have cemented this position over the last 12 months. We've done everything we can this year to support our clients from small entrepreneurs to large corporates. Together with other banks, we've also played a significant role advising the government on lending support schemes, and we were one of the leading providers of these loans. At the same time, our role as the trusted global house bank, the go-to bank for German companies has never been more important. We're one of the only German banks with a truly global reach, and we will continue to invest to have German corporates manage their subsidiaries globally. More than 50% of revenues from our mid to large corporate clients are earned outside Germany. And as you heard from Claudio de Sanctis, who leads our International Private Bank, we have also intensified our partnership with the Private Bank to help business owners and entrepreneurs manage their wealth. Within our Corporate bank in Germany, we see an opportunity to better serve our 800,000 small business clients, as I mentioned earlier. These clients have historically fallen between mid-caps on the one hand and retail banking on the other. We now want to give much greater focus to this customer segment as part of our client-centric approach. So this year, we created Deutsche Bank business banking by bringing together our Deutsche Bank, Postbank and FYRST brands under one management team. We've invested in senior talent by recruiting a Chief Growth Officer, Product Officer and Technology Officer. We've also invested in digital capabilities to create an omnichannel offering. For example, by adding business banking products on our mobile app. Given our scale in business banking, we are an ideal partner for businesses that offer nonbanking services, such as billing and accountancy. And by partnering with these providers, we both understand our clients better and generate additional fee income. We serve about 1/3 of the smaller business banking market in Germany, and Germany represents around 20% of European business banking. So we are the biggest player in the biggest market. We plan to build on the strength in Germany and expand our business bank offering to additional European countries in the near future. This is a successful business that is already growing well, and we expect it to deliver more than EUR 800 million of revenues by 2022. Let me move on to Asia Pacific. We talked last year about making senior hires in Asia Pacific. Our leadership team is now complete. And this year, we have been able to capitalize on having the foundations in place. As I said earlier, we have grown revenues by 6% year-on-year despite the economic headwinds. We've also won recognition for our support of clients. This includes best treasury and cash management bank in South Asia and best crisis response of the year where Asia Risk Awards recognized Deutsche Bank as one of the few banks able to provide 24-hour liquidity throughout the pandemic. Deutsche Bank's international network means we are very well aligned with trade corridors into Asia Pacific as well as trade corridors within the region. We have been using our network to connect Asia Pacific with the rest of the world since 1872. And we have licenses and a global presence in 14 countries. Global clients need a global corporate bank that understands local markets and has local banking licenses. And in the current geopolitical environment, many clients also want a bank that is headquartered in Europe. Our strength in the region is all the more important this year when the east is recovering more quickly than the west. Our CEO in Asia Pacific, Alex von zur Mühlen, will talk more about the regional opportunities in his presentation. So let's now turn to our targeted growth investments starting with merchant payments. Here, we want to complete our activity across all 4 parts of the payments value chain, which you can see on the left-hand side. The chain begins with consumers managing their finances from a personal account. They buy something with a credit card in a business-to-consumer transaction. That payment has to be processed to ensure the merchant gets paid. The merchant also needs treasury services, such as cash management and foreign exchange. And finally, the payment is cleared through clearing and settlement services. Deutsche Bank has a strong offering in 3 of these 4 areas, and we want to get back into merchant payments, which is currently dominated by fintechs and specialist payment companies. In other words, we want to complete the entire value chain as we believe the whole is greater than the sum of the parts. We have 5 key competitive advantages in relation to merchant payments. First, we're the largest issuer of credit cards in Germany, so we already have one side of the B2C transaction. Second, we're the cash management provider for many corporates in Germany and abroad. If we do both, the B2C payment processing, and the cash management for merchants, then we can offer them integrated reconciliation, which is a great benefit for our clients. Third, we're the leading foreign exchange franchise and can manage currency conversions in-house, unlike payment companies. Fourth, because we are a lender with a strong balance sheet, we own a factoring business, and we understand consumer risk. We're able to make very competitive offer on payments and installments. Of course, the fact that we are a bank that is tightly regulated is also an advantage with greater regulation for fintechs on the horizon under same service, same rule regime. Over the last 12 months, we've made a number of senior hires from fintechs in the payment space, including our new Head of Strategy, Chief Product Officer and Head of Merchant Solutions for the Corporate Bank. In Merchant Solutions, we have assembled a strong team. And with that team in place, we aim to have a product ready for Europe by the third quarter of 2021. And to have processed our first billion of payments by the end of 2021. So let me now turn to ESG. As you heard from Christian, sustainability is an important component of our strategy at Deutsche Bank. Our focus in the corporate bank is very much on supporting our clients' ESG transformation. We do that with a range of services across our product suite, whether it is green deposits, green credit facilities, guarantees or social project finance. Of course, the question is whether this will generate additional revenues or simply replace existing revenues. My view is that they are likely to be replacement revenues across the industry as a whole. However, as clients shift from non-ESG to ESG compliant products, there will be disruption. Those banks doing a better job of helping their clients on their journey will benefit from a redistribution of market share. We want to be a thought leader in the development of this market. And our confidence rests on the fact that we have really good knowledge of the needs of corporate treasurers. We have very strong product offering across all our business divisions. Europe is currently the most advanced region with regard to sustainability. And as a bank, we have a deep understanding of EU sustainable finance regulation and standards. Our global network means we can also help multinational clients become ESG compliant in most markets around the world, including emerging markets. Sustainable finance outside of green bonds is a relatively new product, and we expect our volumes to increase rapidly over the next years. So that covers the revenue growth. I now want to turn to cost reduction. As I mentioned earlier, we are balancing lower revenue targets with higher cost reductions. So we now plan to reduce cost at a rate of 7% per annum to EUR 3.4 billion in 2022. We said last year that the majority of savings would come from support and back-office functions rather than the front office, and that the full impact of these reductions will feed through towards the end of our 3-year plan. The total reduction in the front office will be more than EUR 100 million as a result of streamlining our coverage and controlling discretionary spend. We expect to reduce front office costs by 6% this year, excluding transformation charges. Some of this reduction is the result of lower travel and events cost during the pandemic, but we've also completed the integration of Commercial and Corporate Banking in Germany, ahead of plan. In addition, we plan to make over EUR 400 million of savings in our infrastructure functions by removing duplication, looking at the location of our people, bringing technology providers in-house and through higher levels of automation. To give you just one example, we are rationalizing our systems and have migrated more than half the applications we use from legacy systems, which will both improve our technology and reduce cost. We've now made the necessary investment to deliver these infrastructure savings and the reductions will come over the next couple of years. So in conclusion, over the last 12 months, we've delivered a resilient performance in a challenging environment. We have taken action during the year on the things that we can control and have managed to largely mitigate interest rate headwinds. This has enabled us to keep revenues stable and outperform the market. Our relatively low credit loss provisions reflect a well-diversified loan portfolio with strong risk management and robust controls. While we are passionate about our tradition as the global house bank, we're also excited about helping to shape the future of financial services. So we're making targeted investment in areas where we have a clear competitive advantage. Finally, we remain completely focused on disciplined execution, and we're working hard to deliver both our revenue and cost targets in order to reach a return on tangible equity of 11% to 12% by 2022. Thank you.

My name is Mark Fedorcik, and I'm Head of the Investment Bank. I would like to introduce Ram Nayak, our Head of Fixed Income, who will be presenting alongside me today. Over the next 30 minutes, we will take you through an overview of the business. We will look at the progress we have made towards the goals we set out in 2019. Our ongoing strategy and how this will deliver improvements in our return on tangible equity. Our objectives are entirely consistent with those we set out when we presented our plan for the strategic transformation of the business a year ago. Number one, deliver sustainable revenue growth in a well-controlled manner. Number two, focus on tangible franchise improvements through deepening client intensity. Number three, grow with consistent resources; and number four, reduce costs. Let's start with an overview of the business on Slide 2. In 2020, we have delivered EUR 7.4 billion of revenues in the first 3 quarters of the year. This translates into a profit before tax of EUR 2.6 billion. Investment Bank is split into 2 divisions that cover competitive and well-established portfolio of businesses. Origination & Advisory has 7 focused industry coverage groups. We have a strong debt origination business across both investment-grade debt capital markets and leveraged finance. Our advisory business is positioned to grow, and our equity capital markets business remains competitive. In fixed income and currencies, we are the bank of choice for our priority clients. Our product offering is targeted with a strong global franchise, in particular, our financing and foreign exchange businesses are market leading. Across the investment bank, we generate the majority of our revenues in our home European market. And as Christiana and Alex will outline, we have a strong footprint in the U.S. and leading businesses in Asia Pacific. Our journey towards transformation started in 2019. On Slide 3, I'll now walk you through the progress we have made towards our objectives since then. Let me talk about revenues. We have delivered 4 consecutive quarters of year-on-year growth. We believe that more than half the revenue growth delivered in 2020 is sustainable and not purely linked to the strong market conditions. Second, costs. We have delivered this revenue growth while materially reducing our cost base. On a year-on-year basis, we have seen 4 quarters of cost reductions. As a result, our adjusted cost base has reduced by EUR 400 million in the first 3 quarters of the year. In addition to this, our funding costs have also decreased by EUR 225 million year-over-year. Third, clients. We cover our client base with increased intensity and in a more targeted way. This has led to increases in revenues of 25% across our platinum clients and 42% with our top 100 institutional clients. And finally, this has all been delivered with an efficient utilization of our financial resources. We've kept risk-weighted asset consumption broadly flat, excluding regulatory inflation, as we've effectively reallocated capital across the Investment Bank. Let's look at each of these in more detail, starting by drilling down into our revenue story on Slide 4. In 2020, the investment bank is forecast to generate close to EUR 9.1 billion. We believe that this will reduce slightly in 2021 as markets normalize. Reaching a revenue base of around EUR 8.5 billion in 2022. So the question is, how are we going to do it? In origination and advisory, the EUR 400 million of revenue growth from 2019 is driven by both a focused client group and the consistent intensity with which we have covered clients. Our strong debt capital markets and leveraged finance franchises will remain integral, particularly with regard to ESG. We'll also continue to expand in sectors such as health care, industrials, consumer, technology, media and telecom, where we see strategic opportunities for our advisory business and cross border activity. In Fixed Income, we will grow revenues by EUR 1.2 billion. There are 2 key drivers: continued transformation of various businesses and the front-to-back reengineering of our platform. This is supported by the increasing confidence our clients have in Deutsche Bank's credit profile and our capacity to deliver. FIC financing. We are not targeting an overall increase in revenues. Instead, we'll focus on maintaining disciplined risk management across our diversified portfolio and deployment in target sectors, such as asset-backed securities. Now I'll take you through our Origination & Advisory business performance on Slide 5. We have continually outperformed the industry fee pool in the first 3 quarters of the year. This momentum has continued into the fourth quarter. The third quarter of 2020, we delivered market share growth of 20 basis points year-on-year. Reaching our highest level in 6 quarters. In debt capital markets, we grew share by over 110 basis points. In particular, we have seen strength with sovereigns, super national and agencies. We are continuing to focus on cross-border expertise, playing to our strengths. ESG remains an ongoing priority for the business, with a #3 ranking in green bond issuance volumes in the third quarter. Capital markets is a cornerstone of the bank's overall ESG strategy. Leveraged debt capital markets. We ranked 2 globally for the third quarter. And our growth is underpinned by targeting areas of strength such as leveraged buyout financing. Proven our equity capital markets and equities business model works, with our market share in the third quarter increasing by 90 basis points. Clients are increasingly comfortable with our ability to deliver for IPOs, follow-ons and SPACs, a key strength. We will continue to focus on equity capital markets for our clients and are committed to providing quality research. Advisory remains a growth priority. The market share decline you see versus the third quarter last year hides the fact that our quarter-on-quarter market share has increased for 3 consecutive quarters in 2020. Let's look at how our client intensity will continue to drive growth on Slide 6. Revenue growth we targeted and have delivered is only possible, thanks to the client intensity we have demonstrated. We remain focused on serving clients. We have a highly motivated coverage force and client interactions have increased by 55% this year, even through the height of the pandemic. Throughout 2020, we have refined the client perimeter. Reducing the number of clients designated as platinum by 10%. This enables us to further focus on and deepen relationships with clients of the bank as a whole. Importantly, this is not just across the Investment Bank. It's also the Corporate Bank. A large number of our clients utilize services, such as cash management, trade finance and escrow services. This cross divisional coverage is critical to our ongoing success. The increased intensity helped improve our market share with these platinum clients by over 20% versus full year 2019, and we will build on this momentum into 2022. I'll now hand it over to Ram to walk through the changes we are making to the fixed income businesses and the results this will deliver, starting on Slide 7.

Thank you, Mark. Last year, I highlighted a number of businesses that were either underperforming because of specific internal factors or were simply under-invested in. We also outlined our plans to stabilize the fixed income franchise. I'm glad to report that we have made material progress since then, with revenues up 31% over the last 12 months. However, we've all seen the outsized revenues within FIC across the industry as a result of large market dislocations earlier this year. And now that the normalization of these markets is well underway, I suspect the question on everyone's mind is whether these revenues are sustainable. This chart shows our year-on-year change in monthly revenues. As you can see, even prior to the huge market dislocation created by the pandemic, our FIC revenues grew by 47% year-on-year from October to February. Following the market normalization that started to occur after the first COVID-19 wave, our FIC year-on-year revenue growth continued at 39%. In other words, our entire revenue outperformance in 2020 took place on either side of the most volatile 3 months of the year. I think that clearly demonstrates that the revenue growth we delivered in 2020 was driven primarily by those actions we took to sustainably transform our business and was not that dependent on the unprecedented volatility that occurred. Let's look at this transformation in more detail on Slide 8. On this page, I have one simple message. We believe that over half the revenue growth delivered in 2020 is sustainable. And combined with new initiatives, will result in 2022 revenues in excess of EUR 6.7 billion in Fixed Income. This sustainability of revenues driven by the transformation we have taken in a number of our businesses. As you can see on the chart, 2019 was a low point for FIC revenues at EUR 5.5 billion. The light green columns represent revenue growth generated in 2020 that is sustainable. While the dotted rectangles represent those 2020 revenues that we do not expect to recur once the market normalizes. These sustainable revenues would have generated EUR 6.4 billion in 2020, even without the impact of the market dislocation. The light blue bar then shows the remaining revenue growth that will come from future initiatives. The result is a 2022 FIC business with sustainable revenues of EUR 6.7 billion. Let me now explain why I believe these revenues are sustainable. Let's start with the second column, which represents the growth in revenues due to the elimination of inefficiencies in our funding costs. This is now largely complete and has enabled the bank to reduce its liquidity buffer by EUR 15 billion. Along with some other items, this will result in an annual savings in our funding cost of EUR 220 million in 2020. Not only will this saving continue into 2021 and 2022, but we expect incremental reductions of about EUR 100 million as we continue to optimize our funding requirements. Let's move to the next 2 columns, which represent our rates and credit franchises. We highlighted last year that we were unsatisfied with the way some of these businesses performed in 2018 and 2019. And we took a series of steps to transform some of the most underperforming areas. We put the right people in place. We developed a clear and focused client strategy. We materially strengthened our risk discipline, and we invested in technology in order to improve our controls, enhance our pricing and improve the client experience. You can see the impact of this in our European rates business with sustainable revenues growing considerably in 2020 as a result of the improvements in many areas, such as our European government bond business. Our improved market share in European rates would have delivered incremental revenues of EUR 200 million using a pre-pandemic 2019 rates wallet. A similar story applies to our flow credit business. While we have always had a top 3 credit franchise, our secondary flow business has lagged. So we decided to focus on rebuilding that franchise in Europe and in the U.S. The rebuild of our European flow credit platform is largely complete with a focus on Algos, ETFs, indices, and portfolio trading and is driven by investments in technology, in particular, e-trading and in people. The results are clear. With sustainable incremental revenues of over EUR 100 million, again, using a pre-pandemic wallet as a reference point. And as you can see on the chart, we have similar experiences in both foreign exchange and in the emerging markets. In summary, the revenues represented by the light green bars are due to tangible improvements that have already been implemented to transform the business. And we expect them to endure even if the industry wallet in those businesses reverts to 2019 levels. In aggregate, this amounts to around EUR 900 million, 1/4 of which is funding and the remainder is for business transformation. And then finally, we have additional initiatives represented in the light blue bar for 2021 that we estimate will generate an additional EUR 250 million, even in a normalized market. A third of this is from further reduction in funding costs that we just discussed and the balance from a rebuild of our U.S. flow credit franchise and further deepening our cross-sell into corporate banking relationships in the emerging markets and in Western Europe. Together, this makes up the EUR 1.2 billion that takes us from EUR 5.5 billion in 2019 to EUR 6.7 billion in 2022. Now let's look at how our client strategy has helped drive this transformation on Slide 9. Our client strategy is focused on the 4 areas that you can see across the top of the slide. I won't walk you through all of the detail here, but a few examples will help illustrate the success of this approach. We have been focused on those products that are the most relevant to our clients and have been gaining market share here. Our market share in European government bonds and in Euro SSA issuance is the highest it's been in the past 5 years. We have syndicated high-profile deals for Italy and for the first time in 10 years, France. In Germany, we led the first Bund syndication since 2015, along with the inaugural green bond and the EU SURE issuance, highlighting the importance of ESG to our franchise. Let's move on to our client engagement. There is no escaping the fact that since 2016, we have seen a number of clients reduce the level of activity that they have undertaken with Deutsche Bank. However, the improvement in our credit outlook means that we are seeing clients reengage. For example, we can see a clear trend of regaining market share in foreign exchange with global asset managers. Much of this activity is in bilateral OTC products, which emphasizes the increasing comfort that clients have in facing Deutsche Bank. Next, we are focused on our most important clients, we have grown revenues by over 40% across our top 100 institutional clients in the first 9 months of this year. And with our home market clients, this increases to a gain of 45%. Finally, a meaningful part of our increased client volumes are driven by technology. Our performance in electronic markets has been extremely strong this year. G3 bond and spot volumes are significantly up year-to-date, with our market share increasing by over 100 basis points clearly, illustrating the successful delivery of our electronic platforms. Let's move to Slide 10 and look at how we intend to continue to deliver our business transformation while we materially reduce costs. We have already made significant progress in reducing costs across the Investment Bank. From 2019 to 2022, we will have removed EUR 1 billion or 18% of the cost base from a platform that will already have increased revenues by 22% during the same period. About half of this cost reduction has already been delivered. As we explained a year ago, the focus of cost reduction is across 3 categories: the front office, technology and infrastructure. In the front office, the initial focus was on rightsizing our headcount. This is now down over 10% from the second quarter of 2019, just before we started restructuring the business. This is broadly complete. We are also focusing on creating tools to improve productivity in the front office whether that be via automated pricing tools or workflow tools that enable more efficient processing of client activity. 80% of our bond pricing is now automated and we saw during the COVID-19 period that our platforms could absorb daily trading volume spikes of more than 100%. This work will continue and is combined with disciplined expense management across the franchise. We continue to make excellent progress with our technology change. As Bernd mentioned, the migration to single platforms is well underway. We have decommissioned 19% of the total number of applications we have identified and the required work on the remainder is well progressed. Finally, as we said last year, we continue to move to a simplified set of straight-through processes and standardized platforms. And as we complete the migration of our businesses to these platforms we will continue to automate risk, finance and treasury functions, resulting in a material reduction in manual processes. Across technology and infrastructure, we will save over EUR 450 million of additional costs annually by 2022. The front-to-back nature of the transformation is best exemplified by our FIC reengineering program on Slide 11. FIC reengineering is a complete redesign of our business processes and platforms. From the moment a client engages with us, to the point the P&L is booked in the ledgers. Very simply, we are targeting 3 benefits here. Firstly, we're focused on improving our understanding of our clients, timely insight of client activities and behaviors drives the way we cover them, whether it's providing them with cheap liquidity or with customized solutions. In short, it helps us align our services with the clients' needs. Secondly, we are ensuring that we can monetize the value of pre- and post-trade activities. For example, the provision of automated prices to traders ensures tighter bid offers and more consistent pricing. The automation of pre-trade controls, such as credit checks, strengthens our controls framework. And the decommissioning of multiple systems for documentation and cash settlement reduces the cost and improves the quality of execution. So we end up with better pricing, lower costs and better controls. Finally, from an infrastructure perspective, FIC reengineering eliminates duplicative platforms and applications and uses front office systems to directly source the risk and P&L data required by the finance and risk functions, delivering cost savings as well as enhanced controls. To recap the whole transformation process drives revenues and at the same time, reduces complexity, manual processes and costs. It materially improves the client experience and allows us to do all of this in an enhanced control environment. I'll now hand back to Mark to discuss our disciplined approach to RWA deployment on Slide 12.

Thank you, Ram. We really want to stress that our business growth plan is driven by the transformation and client intensity we've outlined. It will not be driven by a dramatic increase in the capital base of the investment bank. From 2019 to 2022, we expect our RWA will increase from EUR 117 billion to EUR 133 billion. Of this, the net business-driven growth will effectively be flat. The inflation you see in the chart comes from noncontrollable items, primarily regulatory inflation. Two key factors helping us achieve this. We assess the Investment Bank as a portfolio of businesses and reallocate resources from one business to another as required to target the most efficient return. And we've invested heavily in developing efficient hedging mechanisms. Our growth is controlled and will not fuel incremental capital allocation to the Investment Bank. Now on Slide 13, let's look at our loan portfolio. I strive to maintain a high-quality, well-diversified loan portfolio, across geographies and various industry sectors. At the end of September 2020, the Investment Bank loan portfolio stood at EUR 73 billion. This effectively flat versus the same point last year. Secondly, the portfolio is extremely well diversified across multiple sectors, including asset-backed securities, leveraged finance, commercial real estate and other sectors, such as direct lending, transportation, infrastructure and energy. Third, the portfolio is extremely well structured. And within our credit businesses, the average loan duration is only 2 to 3 years. Fourth, as Stuart touched upon, within commercial real estate, we are primarily focused on concentration risk, and loan-to-value. For example, in U.S. commercial real estate, only 28% of the exposure is to New York assets. Our loan to values remain at levels we are comfortable with. And lastly, leveraged finance. We syndicated 99% of our capital commitments in the first 3 quarters of this year. We focus on high-quality distribution, and hedging unfunded commitments. Benefited from active risk management hedges in the first and second quarters of this year, resulting in no net losses to the portfolio. Summary, we do not have any concerns with the quality and structure of our loan book. Let's talk about how we turn this transformation into improved profitability on Slide 14. Detail, we have walked you through today demonstrates why we're confident in the Investment Bank is on a firm path to improving profitability. Our 2022 target is based upon 3 key factors that you can see here: conservative revenue assumptions. Expected improvement in credit loss provisions as we see the markets normalize. The continued cost reductions that we are driving, building upon the progress and discipline we have already achieved. Target is that the return on tangible equity of the Investment Bank will be around 10% in 2022. I'll now conclude with Slide 15. We remain fully committed to our 4 key objectives. We are confident that our revenue growth performance is sustainable. We are seeing increasing client engagement as a result of our targeted focus and our clients' comfort in working with Deutsche Bank. Have delivered material cost reductions and have the road map in place to meet our 2022 targets. And the growth we have delivered and will continue to deliver will not result in significant increase in resource utilization. To reiterate, we are committed to delivering our return on tangible equity of around 10% in 2022. And on behalf of Ram and myself, thank you.

Ladies and gentlemen, I hope you're all keeping healthy and safe, no matter where you are. My name is Asoka Woehrmann, I'm the CEO of DWS Group. I joined DWS 22 years ago and have served in various investment management roles, including Global Chief Investment Officer. Before being named CEO in late 2018, I was the Head of the German Private Banking Business of Deutsche Bank for 3 years. Today, I am pleased to give you all an update of DWS Group, its performance, strategic direction and the priorities of the future. Before I begin, allow me to note while Deutsche Bank is our majority shareholder, the asset management segment, outlined by Deutsche Bank in other presentations today, does not have the same parameter basis than DWS. First, let me provide a brief overview of DWS as a firm. A Fiduciary asset manager in every way, DWS, its 900 investment professionals and about 3,500 total staff today of a wide range of investment products and solutions to its global client base. The firm has offices in 23 countries but operates one globally integrated platform, offering a diversified set of asset classes to both retail and institutional clients ranging from active equity to illiquid alternatives. Our market positioning is deeply rooted in our home market, while we have global reach. In Germany, DWS is #1 in retail asset management; and second, in the ranking of assets under management for pension assets. In Europe, DWS ranked second overall in ETFs and ETPs with its global brand, DWS [indiscernible] . The firm is also fifth in active retail asset management in Europe. DWS manages approximately EUR 760 billion in client assets ranks at the third biggest insurance asset manager worldwide. With its rich heritage, long-standing expertise in fiduciary investment management, DWS entered a new era on March 23, 2018. We then entered the first phase of our journey as a listed corporation. We took some clear decisions and refocused our efforts to stabilize, turn around and reshape of our firm. We redefined our strategy towards our strengths and more pronounced client focus turned around our net flows, improve cost efficiency. And I will speak to the key indicators more detail shortly. As we took ahead the second phase of other corporate journey, we feel confident about our business, our firm's place within the asset management industry and the challenges it faces. The work we have done over the last 24 months form the basis for the high ambitions we set for ourselves. In 2021 and beyond, DWS will transform itself to meet the challenges of this decade and the era that lies ahead. DWS will invest to grow in businesses and areas, we believe we can lead our industry. Before I talk about our way forward allow me to reflect on Phase 1 and what we have achieved in more detail. As we went public, we set medium-term targets for DWS. For the end of 2021, we had targeted an adjusted cost income ratio of below 65%. Net flows of 3% to 5% on average and an annual 65% to 75% dividend payout ratio. As a result of our work, we are currently on track to deliver on all of these key targets already in 2020, 1 year earlier than originally planned. Let me go a little bit more into detail on how we were able to achieve this. In 2019 and 2020, comparing the first 9 months of each year, we were able to attract strong inflows, revising the outflows we suffered in 2018. Then in the first 9 months of this year, we further increased our net flows by almost 30% compared to 2019. Likewise, our assets under management have increased since 2018 by a total of about 10%, a rise of EUR 67 billion. With these achievements, we were able to keep revenues relatively stable despite the industry-wide margin pressure. Meanwhile, a strict cost discipline helped us tremendously as we improved our profitability in a significant way. We increase our profit before tax by EUR 118 million in the first 9 months of 2020 compared to the first 9 months of 2018. This is also illustrated by our cost-income ratio, which has dropped by 8.5 points in the same time period. In 2020 so far, we have reached key achievements, especially given the result and the volatile market environment. Our business performance over the first 9 months in 2020 has been strong with net inflows of about EUR 17 billion and adjusted cost-income ratio of 64.3%. Our profit before tax has been an increase of 15% year-over-year. These achievements were in large part based on the program we set in 2018 and early 2019 to stabilize and turn around our business, focusing on strengths and on our client needs and implementing cost efficiency measures across our firm. And the same time, we advance our long-term strategy to reshape our business. We first made the substantial changes to our operational structure at DWS, globally integrating functions and responsibilities across our firm, reducing the number of seats on our Executive Board, introducing a dedicated product function and improving collaboration throughout all front and back offices. We strengthened and expanded our strategic partnerships, a key driver of DWS success. For example, we renewed partnership commitment with Zurich Insurance Group in Germany until 2032 and entered new partnerships with Eurovita in Italy and Northwestern Mutual capital in the United States. Meanwhile, our long-standing strategic partnerships with DVAG, Nippon Life, Generali and, of course, our trusted colleagues at Deutsche Bank Private Bank, Deutsche Bank Wealth Management and Deutsche Bank Corporate Bank and others have also contributed significantly to our success. DWS also took a 24.9% stake in Arabesque AI, adding capabilities to our tool chest in one of the most promising fields for progress in asset management industry, artificial intelligence. Furthermore, in 2020, we worked intensively to implement an ESG strategy that helps embed sustainability into our corporate and fiduciary DNA as we see it becoming a dominant theme for our investors, our clients and regulators alike. We established a DWS Group Sustainability Office to holistically manage consistent implementation across all regions and all segments. DWS also introduced a unique approach of implementing ESG standards into our investment processes called Smart Integration. This is a pioneering approach to ESG integration. It goes far beyond previous industry standards. We employ our own ESG engine to use research data and artificial intelligence to identify potential portfolio risk in our investment platform and to actively manage corporations in our investment universe for more sustainability. Furthermore, DWS formed an ESG Advisory Board with heavyweights from NGOs and academia as well as from globally leading companies to advise DWS on sustainability matters and best practices. To summarize, DWS has succeeded with its strategy for Phase 1 after the IPO to stabilize, turn around and reshape the firm for a more successful and sustainable future, resulting in the expected delivery of the medium-term target 1 year early. As we took now really seriously the first phase as we now have to look ahead into Phase 2, an objective view of the market and of our industry reveals a clear picture. There are mega trends and industry-wide challenges that have been pushing asset management out of its comfort zone. Some of you might remember, I spoke about this push out of the comfort zone at the DWS investor update in late 2019. But let me quickly outline 7 trends we see once again. First, secular stagnation. Relaxed monetary policy and increasingly similar fiscal policy in large part of the world, they are keeping interest rates at low levels, and this has been the case for years. The consequences are immense also for the asset management industry. Second, ESG. As DWS, we are in lockstep with Christian in our assessment of the role of sustainability. The topic has not only become part of the zeitgeist, it has developed enormously and exponentially in its relevance for asset management. And while sustainable investment products might have been inferior in performance to their nonsustainable equivalents just a few years ago, we no longer see this in the data today, to the contrary. Third, digitalization. The 21th century (sic) [ 21st century ] is already marked by the fundamental disruption caused by digitalization. In an increasingly automated society and economy, it will be a challenge for people to prove their added value in all types of value chains and processes. This also applies to the asset management industry. The fourth, the tectonic shift in the economic and political balance of power towards Asia, especially towards China. This geographic shift offers opportunities for investment managers. Fifth, the already high and still rising expectations of clients. In this complex market and interest rate environment, investor sophistication poses challenges for our whole entire industry to meet expectation for returns and risk appetite. Sixth, with an ever-wider range of products, the rising client expectations I just described and the high level of competition, margin pressure is increasing for the entire industry. No asset manager will be able to escape this trend. The task at hand is to counter the effect of margin pressure through scaling, product variety, product innovation and product quality. And the seventh, we see a continued and growing trend towards consolidation in our industry driven by all 6 of the factors just mentioned. Now the COVID pandemic, we are all still experiencing has further accelerated this push out of the. Some of the trends, we had identified before, so strong acceleration, some more moderate. But it is, without any doubt, the challenges the asset management industry faces have become more severe. In this environment, DWS will nevertheless succeed by dedicating itself to the strategy for Phase 2: transform, grow and lead. It is our ambition to make DWS, one of the leading asset managers of the world, just as Christian has said consistently since the Annual General Meeting of Deutsche Bank in 2019: an asset manager that not only recognizes the signs of its time, it knows how to use them in its fiduciary duty to its clients and for its corporate success; an asset manager that offers a wide range of investment solution and products to all types of clients around the world; an asset manager that makes ESG the core of its activities; an asset manager that does not see digital disruption as a threat but rather as an opportunity to use algorithms and automatization to improve investment processes and decisions; an asset manager that takes advantage of the enormous growth opportunities on the Asian continent, especially in China; and an asset manager that is actually positioning itself in a consolidated market in order to strengthen itself also inorganically. We have a clear road map to achieve all this. DWS will further transform key parts of the -- of its organization, building on the work that has already been done. This includes doing everything we can to continue and strengthen our asset management focus approach with the core platform, including IT and policy framework tailored to DWS' fiduciary business and its clients. This transformation also includes integrating new technology into our work, such as artificial intelligence, the use of data and algorithms will improve investment managers in their decision-making in the future and, with the help of our automatization, will also ensure better and more efficient processes. We will also go through a cultural transformation that is performance-driven and a clear meritocracy helping us attract the best talents from a wide range of profiles and backgrounds. The introduction of flat hierarchies through our new functional role framework is the biggest milestone in this area, ensuring those with the brightest ideas are heard no matter how senior they are and how many years of service they have. DWS will grow. We will invest into targeted growth areas, building on our strengths and existing expertise. Above all, we will invest in areas where we can be a leader in our industry. At the same time, we will still maintain adjusted cost-income ratio at least at the level expected to be achieved this year of max 65%. We will invest into investment strategies on both ends of the spectrum: high-margin asset classes and products in the active and alternative space on the one side and into scalable passive business, especially in ETFs, on the other side. In all these areas, we already have strong market positions and proven expertise that we intend to build on further. We will invest in these areas because we are convinced that we can be a leader in them. Our expertise in this field goes back decades. We are equally committed to invest into expanding our client base. For DWS, this means further leveraging existing partnerships and finding new ones, especially in the growth region of Asia. Even if the pandemic may have slowed us down a little bit, our view of this market remains unchanged. In Asia, especially in China, we see great potential to broaden our client base. And finally, we will not slow down in targeting growth in the area of ESG investing. The subject of sustainability has become an indispensable part of the zeitgeist and keeping our commitment to making ESG the core what we do. We will invest into product innovation in this field and position us as the go-to one-stop-shop ESG investment manager. We will transform and grow. And we will do so to take a leading position in our industry as we shape the second phase of our corporate journey after the IPO. We will become an ESG leader in the asset management industry, both as a fiduciary and as a corporate. We will become a leading European asset manager present all over the world with a global client base, leading in the all-important passive space, especially in Europe, and leading in high-margin businesses leveraging our strong home market position in thematic equities, multi-asset and alternatives, such as real estate and infrastructure. We are confident about our way forward. As investors, we are entrusted to build the best foundation for our clients' future. And we have a very clear-cut part of how to fulfill this purpose successfully. We will be bold and consistent in executing our strategy to transform, grow and lead just as we have been decisive in completing the first Phase 1 year ahead of the schedule. The Phase 2 is ready for launch. Thank you for your attention.

Good to be with you virtually today. I'm Christiana Riley, CEO of Deutsche Bank in the Americas. Deutsche Bank in the Americas has been on a long journey. It's an evolution that I watched at a distance from Frankfurt for most of my career. In my tenure as CFO of our global Investment Bank up until 2019, I had close personal involvement in its transformation. In that position, I drove the changes to the model that we undertook last year that have decisively impacted but greatly improved the economics of our business model in the Americas. And now as Regional CEO, I'm leading the ongoing transformation each day. As a consequence of the decisions that we've taken, Deutsche Bank in the Americas is necessarily different. We are not the bank that we were. Since the global crisis, there have been many questions around Deutsche Bank in the Americas. What is its business and its competitive platform? How accretive is it to the group's results? And what level of risk is being taken for that return? I will answer these today. I will explain what our business in the Americas is, how it fits into the group and unpack the derisking of our platform, which has led to higher returns. And I will share with you where we are heading. The size, power and attractiveness of the domestic market for financial services in the Americas is well understood. But not just domestically, it's also extremely attractive to our European and Asian clients. Our ability to provide access to the U.S. market is an essential part of Deutsche Bank's global offering. As evidence thereof, 70% of our revenue from corporate clients in the region is derived from clients headquartered outside of the U.S. and 30% from American companies. Of the 70% of corporate revenue coming from outside of the U.S., 2/3 of that comes from clients in our broader European home market and 1/3 from clients in Asia. Alex will share more on the attractiveness of our business in the U.S. for Asian clients in his presentation shortly. Turning to Slide #2. Since the global financial crisis, we have become smaller and simpler. And as a result, we are stronger, as this slide clearly shows. We have exited unprofitable businesses, reduced our client perimeter to be focused on client relationships rather than lead tables, and we no longer take outsized risk. This has resulted in exactly what we intended: increased stability and predictability of our returns. Reflecting in the first instance on the size and scale of our operations, I draw your attention to the top row of the chart. The bank is fundamentally changed relative to our position in 2007, 62% smaller in terms of our total assets. Since our strategic announcements in July 2019, the picture for the core bank has been largely stable. Our strategy has been one of optimization, as you will see in subsequent slides. Moving down to the next row of the chart to reflect on our returns in the region. Material reductions in unproductive assets have driven a 41 basis point improvement since the crisis. And a full quarter of that improvement, 11 basis points, resulted from improvements since July 2019. Lastly, reflecting on the bottom 2 lines of the chart and the improvements our refocused business model had enabled in terms of workforce and cost efficiency. We've made considerable progress with adjusted costs and workforce down by more than 1/3 since 2007 and by 13% since the second quarter of 2019. Consistent with the path of reductions that Mark and Ram outlined at the Investor Deep Dive last year, the majority of the reductions to date have come from the front office. Going forward, we are increasingly focused on infrastructure costs while maintaining our investments in technology and controls. But our story is not about shrinking. On the contrary, our business in the region, now properly focused, has a clear growth trajectory. As slide 3 shows, the region's revenues for the first 9 months of 2020 are at EUR 3.8 billion or 21% of the group. Our costs or 19% of the group, and our use of the group's balance sheet is highly consistent with 21% of risk-weighted assets utilized by the region. The Investment Bank makes up about 60% of regional revenue, with the remaining 40% comprising the Corporate Bank, the Private Bank and our Asset Management. Our decision to focus the Investment Bank on its strengths has clearly been the right one, demonstrated now by 4 consecutive quarters of revenue growth since the end of 2019. Our regional Origination & Advisory footprint is now on a stronger foundation as we target our approach to sectors where we have particular expertise. The strengthening of our Origination & Advisory segment is evident in our outperformance of the global fee pool in each of the last 3 quarters, to which the Americas business was a key contributor. In FIC Financing, we have particular regional strength in commercial real estate, asset-backed and leveraged finance. These businesses win domestically as well as add their expertise to the group and strengthen the firm as a global leader in these businesses. And as you heard from Stuart, the credit risk in our financing businesses are not outsized compared with the group, and the group isn't outsized relative to The Street. Our FIC trading business in the region is centered on our foreign exchange rates, credit trading and emerging markets businesses. The evolution in the investment banking platform in the Americas over the past 18 months has been remarkable. It's given us a strong platform. And as you've heard earlier from Mark and Ram, we are seeing a resurgence of client engagement as a result. An example is the power of our franchise delivering for our global clients is T-Mobile's inaugural investment-grade bond issuance to finance its merger with Sprint earlier this year. We coordinated all aspects of the transaction, attracting an order book peaking at over $75 billion. The strength and quality of the order book allowed our client to upsize the transaction from $10 billion to $19 billion. The transaction occurred in the depths of the lockdown, in a period of market volatility and was the 13th largest bond offering on record. Deutsche Bank was also proud to act as adviser to T-Mobile on the merger as they embarked on building a nationwide 5G network in America with the acquisition of Sprint. Despite the challenges of COVID-19, 2020 has been a year of stabilization for our franchise and of increasing business with our target clients, giving us a strong platform going into 2021 and 2022. Turning now to the Investment Bank's returns in the region, which, given the significance of that business and its regional capital consumption, is the key driver of improved performance. When I was operating as CFO of the Global Investment Bank in 2018, it was abundantly clear that the U.S. Investment Bank could not provide an adequate return to shareholders with the resource drag that our equities franchise put upon us. Looking at the left of this slide, you can see from the gray bar, the capital consumed by equities was significant. The Investment Bank's regional return on tangible equity was only 2% due to the drag -- the significant drag of the underperforming leverage-intensive equities platform. Our new strategy has released substantial capital and has contributed to the increased returns in the investment bank, which are around 9% for this year. 2020 was a particularly good year. The conditions were historically unprecedented with debt capital markets volumes being fueled by rate cuts, this success offset somewhat by returns on our lending book. Clearly, we also saw record sales and trading volumes. The Investment Bank in the Americas is exceeding the group return on tangible equity 2 years ahead of schedule. Looking ahead to what are probably more normalized times, we nonetheless expect the 2022 return to increase to approximately 11% but the improvement from here coming from lower infrastructure costs and increased client activity. So where as a region do we go from here? We fully expect the positive momentum of increased shareholder returns to continue. As you can see on Slide 5, 3 factors are driving this. First, we see continued opportunities for recovery of market share to drive revenues in the region. Our model in the Americas stands to benefit from the multiple structural trends that Christian articulated previously as growth drivers. We expect to see increased global financing demand post COVID as corporates reestablish themselves and renew their investment programs. The increasing demand for financing driven by digital and green transformations will also be a growth driver for us. And the rise in demand for sustainable finance presents many opportunities as we play our role in both aiding and accelerating this transformation. Leveraging on our European experience, I expect this to be particularly strong in the U.S. given how the new U.S. administration is expected to take sustainability as one of its key priorities. We also expect revenue growth from our controlled expansion in credit to new clients in focused sectors, in particular, in health care, industrials, consumer and the technology, media and telecom sectors. In our FIC Sales & Trading business, we expect additional revenue as we build upon the market share gains that have occurred this year and turn them into sustainable growth. With the growing confidence in the market that our Sales & Trading platform has stabilized and with improvements in our credit outlook, we are seeing the normalization of our wallet share with core client relationships. These factors explain why we see the Investment Bank's revenue continue to strengthen across the region in a sustainable way. Secondly, reduced costs and improved controls are also driving our improved return outlook. We continue to invest in greater automation and strengthened controls, which, in turn, drive efficient and effective infrastructure. My team is working on securing an additional $500 million of savings through automation, which will significantly improve the region's utilization of resources. Lastly and never to be underestimated, improving our culture in the Americas is vitally important and is an element of our improved returns. We've seen a meaningful increase in confidence and pride internally in the region, contributing to lower attrition and a greatly improved ability to attract new talent to our platform. I'm focused on our people in the Americas as we drive forward a more dynamic culture. And we are making excellent progress on what it means to be a successful, diverse employer in this market. Progress against these 3 drivers supports a regional return on tangible equity of over 10% by 2022. To conclude, the Americas region is essential to our global client base, and our business here is once again strengthening. We are taking increasing advantage that we are here at the crossroads of global finance and operating in the world's largest economy. We are firmly grounded in our identity as a European bank in the Americas, opening up the depth of the American marketplace to European clients and, in return, providing our U.S.-based clients access to the global marketplace. Deutsche Bank in the Americas is transformed. We are smaller, simpler and stronger. We take less risk and are more profitable. Our revenue outlook is increasing, and our costs are declining. Our culture has improved and continues to strengthen. And pride is rapidly returning to the firm with all the benefits that brings to retention, recruitment and performance. Our contribution to the group's return on tangible equity has improved materially, is increasing each year and, based on the strength of our core businesses, is contributing well to the group's 2022 target. All strong progress, and the journey continues. Thank you.

Thank you for joining us today. My name is Alex von zur Mühlen. And earlier this year, I was appointed CEO of Deutsche Bank Asia Pacific. I was most recently Head of Group Strategy, developing the transformation that we presented to you in 2019. At this event a year ago, the management team told you Asia would play a central role in our strategy. And today, I would like to elaborate on the region's growth story, the opportunities it now offers to us and, more importantly, why we are well positioned to capitalize on them. Asia is at the epicenter of global trade growth now and for the foreseeable future as supply chains evolve. We are a leading truly global bank in the region with strong linkages to our international network. Deutsche Bank has deep roots in Asia. They go back to 1872 when we opened our first branches in Shanghai and Yokohama. And now we are present in 14 markets. Our commitment has been strong and consistent. That's especially true as we were one of the few global banks who did not leave this region in the Asian Financial Crisis. We are profitable in the region, and we are investing into our footprint. And building on our successful franchise, we have the ambition to deliver a return on tangible equity of 15% by 2022. I would now like to expand on some of the key macro trends that illustrate why Asia Pacific offers such a remarkable potential. With and after COVID-19, Asian economies are expected to lead the global return to growth. With the latest GDP estimates of more than 5% per year, this region is predicted to grow significantly faster than the rest of the world. And banking fee pools are also expected to rise accordingly. So what are the key macro trends? Well, firstly, the general trend of economic growth in the region accelerated by a shift of supply chains to and within Asia. And this will particularly benefit the ASEAN corridors. Our local presence and cross-border capabilities are highly complementary in this regard. And this is the glocalization that Christian referred to earlier. Secondly, it is the rising scale of Asian globalization with more Asian multinational corporations in need a genuine global partner. Just as Deutsche Bank has helped European multinational clients to expand throughout our history, we are now leveraging our expertise to help Asian clients with their global expansion. Thirdly, the continued development and liberalization of Asian financial markets. The internationalization of the renminbi and the Indian rupee, together with the opening of China's bond markets are just some examples. As you can see, they play to the strength of a leading global capital markets platform. Finally, it is the creation of the significant wealth within this region. And this is opening up attractive opportunities in the fields of wealth and asset management. The next slide explains why we are well positioned to capture these growth opportunities. With over 30 branches in the region, we benefit from a strong local footprint alongside the worldwide reach. For example, we were the first bank approved by regulators to take onshore renminbi all over the world across our branch network. We also led the recent U.S. dollar and euro bond issuances for the People's Republic of China, leveraging our global network. We benefit from extremely strong brand recognition, both locally and globally. And this is making us an easy choice for businesses from outside Asia Pacific looking for a partner in the region and for local clients looking for a partner for intra-Asian or global activities. As an example, we are advising SK Hynix in its current acquisition of Intel's memory and storage business for USD 9 billion. We offer clients an extensive suite of banking products, both onshore and offshore. For instance, we're 1 of only 2 foreign banks permitted to underwrite bonds issued by local and foreign corporations in China thanks to the Type-A underwriting license we have been granted there. We have strong local market regulatory understanding and connectivity. We offer extensive local expertise and services for clients based in and outside Asia Pacific and are a strong liquidity provider in all major Asian locations. As I will show you later on, this enables us to solve the evolving trade corridors within Asia and from Asia into the rest of the world. Throughout the COVID-19 crisis, we continuously provided clients with much-needed FX liquidity. We did this seamlessly as it was recognized when we were awarded both ARA market maker of the year and crisis response of the year by Asia Risk Awards. We are the only known bank amongst our peers with a dedicated platform-wide regional ESG team. Our specialist knowledge of this region tells us that its relevance will grow significantly. And this year, we transacted the first-ever ESG-linked hedge in the Asia Pacific region. Let's look into the expanding role the region is playing in terms of revenues for Deutsche Bank. In 2019, we generated EUR 2 billion in revenue from Asia Pacific clients doing business with us within the region. We also generated EUR 900 million of inbound revenues from clients headquartered in EMEA and the Americas doing business with us in Asia Pacific. Increasingly, we're supporting outbound operations for clients headquartered within Asia as they expand around the world. This group of Asian clients generated a further roughly EUR 500 million in revenues, which have been booked in EMEA and in the Americas. And with the continued rise of Asia Pacific multinationals, the evolution of trade corridors and the increase in quantum of capital seeking foreign investment opportunities, we are confident these numbers will grow. Let us now take a look at some key financials. In the first 9 months of 2020, Deutsche Bank Asia Pacific generated total revenues of EUR 2.6 billion with adjusted costs of EUR 1.7 billion. Our relative contribution to overall group revenues and costs is strong. It is important to note that our revenues are well diversified across our businesses. Let's start with the Investment Bank. It provides a full product suite with market-leading positions in Financing and Fixed Income & Currencies. We rank #3 in FIC across the region. On Corporate Finance, we have resized our platform globally and in Asia Pacific as part of our transformation strategy, and we now have a focused, efficient and effective setup. Our Corporate Bank offering includes trade finance, cash management and security services in selected markets. The platform was ranked #5 in the region in 2019 and, as Stefan told you earlier, the platform is set for growth. Our Asset Management business is focused on institutional clients and strategic partnerships. We run a successful joint venture in China in the form of Harvest Fund Management with around USD 140 billion assets under management. And thanks to this, we are amongst the top 3 foreign JVs in China and growing. The international Private Bank is focused on high-net-worth individuals for offshore China and Southeast Asia and nonresident Indians globally. We also operate a growing personal and business banking platform in India. We are investing in our Wealth Management business. And thanks to the market-leading lending and capital markets platform that Claudio mentioned, we are ideally positioned to solve the sophisticated needs of these regions' entrepreneurs. Christian talked about client centricity earlier. In Asia Pacific, we're positioning ourselves even more strongly to support our clients by increasing connectivity between different parts of our bank. So you're looking at a well-established, profitable and market-leading platform with an outstanding franchise, one that stands to be the single-largest contributor to the group in terms of RoTE; a bank which offers a full product suite, onshore and offshore with deep physical presence across the region, which is fully connected to our global network, which is efficient with its use of capital and head count and which still see significant potential for growth. Let me talk for a moment on how we're going to capitalize on our unique positioning. Here, you can see our aspirations for growth. We anticipate that our 2020 RoTE will outstep 2019's and already exceeds our 2022 group target level. Moving forward to 2022, we plan to bring this to a level of 15%. How will we get there? In this region, we have accelerated and broadly concluded our reduction measures. With our foundation on solid footing and building blocks already in place, we have significant operating leverage that will enable us to achieve greater financial success. Our focus is on growth. We will concentrate on the following key strategic driver. Firstly, continuing to build on our strengths: our comprehensive range of products and services across divisions, deep knowledge of the region, our remarkable pool of talent and, above all, the cross-border capabilities that make us a unique and trusted platform for clients. Secondly, client centricity is key. We will carry on delivering solutions for clients from all parts of the bank. We very recently remodeled our coverage structure towards an aligned partnership between Corporate Finance and Wealth Management. Deutsche Bank is ideally placed to be a leading bank that an entrepreneur in the region chooses for both his or her business and personal needs. Risk management products on the back of evolving corporate treasury needs have always been a key differentiator for Deutsche Bank with our clients. We are aligning the Corporate Bank and Fixed Income & Currencies business more closely through combined tech investments and talent pooling in order to deliver even more advanced and innovative solutions for our clients. And we will do so in the strong control environment that Stuart has told you about, with a clear focus on credit, market and nonfinancial risk. Thirdly, our markets are dynamic. We need to continuously evolve with our clients' needs, and that will mean leveraging our local market expertise and marrying our platform strength to support our clients' shifting supply chains. We will support the growing outbound activity from Asian multinationals with our global network. This will all result in stronger bonds with our clients. And as we increase client connectivity, we will further increase our opportunities. At the same time, and as I mentioned before, we will make even greater efforts to distinguish the Deutsche Bank brand through leadership in ESG solutions, an area of increasingly critical importance to our clients, and underlining our commitment to sustainability. Lastly, we will focus on our fourth strategic driver and invest more in our platform within the Asia Pacific region. We aim to hire to strengthen client coverage and further enhance our relationships. We will consider increasing our capital allocation where we see potential for greater scale in the market, for example, India, where the opportunities are promising. We will also complement our local offerings, such as our recent establishment of a cash branch in Australia. We will continue to invest in infrastructure and technology to support business growth. As Bernd discussed, we will leverage our global tech investments but will also allow for regional customization where appropriate. To give you an example, we just launched GEM Connect. That is our brand-new technology solution automating treasury processes across collections, payments, funding and FX across the Asia region and into other emerging market locations. To conclude. At Deutsche Bank Asia Pacific, our transformation is broadly complete. We've cut back our costs, reduced our head count and maintained our capital on par. We are now focused on profitable, well-controlled growth. We are strong and poised to achieve a solid RoTE and to contribute even more to group performance going forward. With our deeply rooted presence and excellent capabilities across the region, we are well positioned to capitalize strongly on the exciting opportunities in this dynamic and fast-growing part of the world. Thank you.