Funding

Multiple macro topics emerged during 2024 and weighed on markets, including CRE-related worries in February, political turmoil in France during June, an unexpected rate hike of the BOJ end of July as well as weak economic data out of the US in August put investors into a risk-off mood. Despite creating a dent, those events were not material enough to outweigh risk-on mood. Against this backdrop, the Bank navigated well through the markets and successfully concluded its issuance activity at 18 billion euros, in line with our guidance of ending the year at the upper end of a 13 to 18 billion euro range.

In contrast to market fears, credit markets showed a constructive performance despite the multiple disruptions with broader indices trading tighter vs. year end 2023. Following rating upgrades in 2023, DB’s spreads rallied in the first half of 2024 while trading roughly flat in the second half. Otherwise, no idiosyncratic anomalies, which led to wider levels. DB’s CDS and EUR spreads performed well this year, DB’s USD spreads exhibited an even better performance.

The total issuance volume of € 18.0 is split as follows: € 3.0 billion in capital issuances, € 6.9 billion of senior non-preferred funding, € 8.1 billion in senior preferred. From a currency perspective, the total issuance volume is divided as follows: Euros (€ 9.6 billion), US dollars (€ 6.2 billion), Japanese Yen (€ 0.6 billion) and other currencies aggregated (€ 1.6 billion). The Group’s investor base for 2024 issuances was as follows: asset managers and pension funds (62%), banks (11%), retail customers (8%), insurance companies (7%), other institutional investors (7%), Governments and agencies (2%) and Other (3%). The geographical distribution was split between Germany (16%), rest of Europe (44%), U.S. (23%), Asia/Pacific (14%) and Other (3%). The average spread of issuance over 3-months-Euribor/RFR (Risk Free Rate) was 110bp for the full year. The average tenor was 5.6 years. The Group issued the following volumes over each quarter: Q1: € 5.1 billion, Q2: € 5.6 billion, Q3: € 5.6 billion and Q4: € 1.7 billion.

Deutsche Bank’s issuance plan for 2025 is € 15-20 billion, broadly in line with last year’s plan. Focus will be on senior non-preferred bonds and capital instruments. Senior preferred issuances will be primarily in non-benchmark format. The Group also plans to raise a portion of this funding in U.S. dollar and may enter into cross currency swaps to manage any residual requirements. The Bank has total capital markets maturities, excluding legally exercisable calls, of approximately € 12 billion. Furthermore, the Bank issued structured notes with a volume of around € 10 billion in 2024 and plans to issue ~ € 9 billion in 2025. This activity is conducted by the FIC division and not part of the Treasury issuance plan.