DB - Deutsche Bank: Position For Increased Shareholder Returns

• Q3 return on tangible equity of 1.5% was impacted by 583M EUR of transformation charges (approximately 4.6% impact on RoTE), offset by just 10 bps of credit loss provisions.
• Around 500M EUR of transformation charges should be booked in Q4, leaving just 300M for 2022.
• DWS reported 12B EUR of net inflows, bringing AuM to a new record of 880B EUR. However, the share price is down roughly 10% in the last 2 months.
• Lack of buyback and cheap valuation of domestic peer Commerzbank should limit near-term upside.
• Results should continue to improve post 2022, driven by a smaller Capital Release Unit and no planned transformation charges.

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