Deutsche Bank sees scope to increase RWA reduction target by EUR 10B

Around EUR 10 billion of Deutsche Bank’s 2025 RWA optimization target of EUR 15-20 billion was already achieved by the end of the third quarter, without material impact on revenues. Progress included data and process enhancements and an additional securitisation transaction during the quarter; additional portfolio measures are in progress, including optimized hedging and reductions in sub-hurdle lending. Given progress to date and further reduction potential, the bank has identified scope to increase its RWA reduction target by EUR 10B, to EUR 25-30B. Additionally, the bank’s latest analysis indicates that the impact on RWA from the implementation of Basel III requirements will be EUR 10-15B lower than originally estimated. Taken together, these factors create potential to free up additional capital of around EUR 3B through 2025.