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 2022 full year earnings will strengthen meaningfully, which would narrow the performance gap with peers and improve resilience to unexpected stresses. We also assume the maintenance of sound capital and liquidity buffers, in line with management guidance. We expect that the bank will navigate effectively the global economic slowdown and Russian energy cutoff. 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

...Deutsche Bank's transformation program is increasingly delivering tangible benefits. We think Deutsche Bank is becoming a more focused, profitable, and better-controlled group as it completes the repositioning of its business model and balance sheet. Its disciplined execution of the transformation program announced in 2019 has positive implications for franchise stability, management credibility, and the level and consistency of earnings. The program involved fundamental changes, including exiting equities trading and prime finance, managing down other non-strategic assets, implementing significant cost-saving measures, and investing in technology and internal control...

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