Deutsche Bank Conference Call Summary Company Overview - **Company**: Deutsche Bank (NYSE: DB) - **Date**: November 20, 2025 Key Points Strategic Initiatives - Deutsche Bank is executing a cost-saving initiative while reinvesting a significant portion of these savings back into the business, particularly in private markets and fund structures to enhance liquidity and pricing strategies [1][2] - The bank is focusing on utilizing data more effectively to guide advisors in client interactions, prioritizing conversations based on client needs and portfolio gaps [2][3] AI and Technology Integration - AI is viewed as a tool to enhance productivity and streamline processes, particularly in retail banking, but the bank emphasizes the importance of personal connections in higher-end client relationships [5][6] - There is a recognition of the potential risks posed by AI, particularly in delaying clients' decisions to seek financial advice, but the bank is actively engaging with AI to improve client onboarding and service delivery [8][9] Growth Targets and Financial Performance - Deutsche Bank has set a medium-term target of achieving a Return on Tangible Equity (RoTE) of 13% or higher by 2028, with a focus on sustainable growth and operational efficiencies [14][17] - The bank aims to improve its cost-income ratio to below 60% by 2028, with a commitment to achieving gross efficiencies of EUR 2 billion [36][40] Market Opportunities - The bank sees significant growth potential in the asset gathering business, particularly in the private banking and asset management sectors, targeting 18 million retail clients in Germany who are increasingly seeking private pension solutions [21][22] - Deutsche Bank is also focusing on enhancing its corporate banking services, particularly in cash management and payments, to capture more market share [23][24] Regulatory and Economic Environment - The bank anticipates a GDP growth of 1.2% in Germany, with potential upside from government stimulus measures, particularly in defense and infrastructure sectors [25][26] - Deutsche Bank is positioning itself as a European alternative in the banking sector, capitalizing on geopolitical uncertainties and the demand for risk management solutions [33][34] Shareholder Returns - The bank has adjusted its distribution policy to a payout ratio of 50% of underlying cash results, with a mix of fixed dividends and share buybacks, aiming for sustainable returns above 14% [13][46] - There is an expectation of continued dividend increases, balanced with share buybacks to enhance shareholder value [46] Conclusion - Deutsche Bank is on a transformative journey, focusing on organic growth, operational efficiencies, and leveraging technology to enhance client service and profitability. The bank is committed to maintaining a strong market position while navigating the evolving financial landscape.