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

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

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

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

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

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

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

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

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

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

Kind regards,
John Cryan

Deutsche Bank (XETRA: DBKGn.DE/NYSE: DB) Yesterday announced that it expects to incur a number of charges that will contribute to an overall loss for the fourth quarter 2015:
Expected litigation charges of approximately EUR 1.2 billion, the majority of which are not anticipated to be tax deductible. These provisions are preliminary and may be further changed by events before publication of the bank’s annual financial statements on 11 March 2016
Restructuring and severance charges of EUR 0.8 billion. These charges are largely related to the Private & Business Clients (PBC) segment. PBC will also take a EUR 0.1 billion charge for the impairment of software

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

Challenging market conditions in the quarter contributed to a year-over-year decline in fourth quarter revenues, principally in Corporate Banking & Securities (CB&S). As a result of these revenue developments and the specific charges for the fourth quarter mentioned above, the bank expects to report revenues of EUR 6.6 billion, a loss before income taxes of approximately EUR 2.7 billion and a net loss of approximately EUR 2.1 billion for the fourth quarter.

Deutsche Bank currently expects to report a fully-loaded CRR/CRD4 Common Equity Tier 1 (CET1) ratio at the end of the fourth quarter of approximately 11%. The regulatory capital treatment of the bank’s Abbey Life business has changed in the fourth quarter, resulting in an approximate 10 basis point reduction in the CET 1 ratio. Additionally, the previously announced agreement to sell the bank’s 19.99% stake in Hua Xia Bank is expected to close in the second quarter 2016. This sale, on a pro-forma basis, would have improved Deutsche Bank’s Common Equity Tier 1 capital ratio (CRR/CRD 4 fully loaded) as of 31 December 2015 by approximately 50 to 60 basis points.

All of these amounts are estimates. Details of the preliminary fourth quarter and annual results will be disclosed on 28 January 2016.

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