Update: Deutsche Bank AG

The stable outlook reflects our view that Deutsche Bank is set to maintain its improved strategic focus and execution. We expect that the bank's 2022 earnings will strengthen meaningfully, which would narrow the performance gap to peers and improve its resilience to unexpected stresses. We also assume the maintenance of sound capital and liquidity buffers, in line with management guidance. We could consider raising the ratings over our two-year outlook horizon if Deutsche Bank continues to deliver on its strategy and positions its creditworthiness closer to peers with 'bbb+' group stand-alone credit profiles or 'A' issuer credit ratings. In particular, we would look for evidence that the bank is set to sustain stronger, more consistent earnings, and has a clear

...Deutsche Bank's transformation program is delivering tangible benefits. We raised the long-term issuer credit rating in November 2021 because we think Deutsche Bank is becoming a more profitable, more focused, and better-controlled group as it implements its operational restructuring. The bank is two-thirds of the way through implementing the plan and almost all of the associated restructuring costs will be expensed by the end of 2021. The transformation program is more decisive than previous editions in addressing Deutsche Bank's competitive weaknesses: excessive costs and too many underperforming business units. Furthermore, we see greater rigor in senior management's execution of the plan, and the bank is achieving its milestones as it works toward its 2022 financial targets. This has positive implications for franchise stability and the predictability and sustainability of earnings. Steady earnings improvement on track to continue in 2022. Deutsche Bank's reported pretax profit improved...

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