Company: ADZCF
Filing Date: 2025-03-13
Form Type: 20-F
Source: 0001159508-25-000020
Chunk: 234

Company: DEUTSCHE BANK AKTIENGESELLSCHAFT
Filing Date: 2025-03-13
Form: 20-F
Chunk 234
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 Treasury. Key risk themes The latest developments and key uncertainties during 2024 are part of the bank’s ongoing credit risk management activities and governance framework. These activities include, but are not limited to, regular emerging risk reviews (amongst others Germany, Middle East) as well as portfolio deep dives, day to day risk management on the level of individual borrowers, and regular model validations. Portfolios which have been identified for enhanced monitoring and downside risk assessment for the Group in 2024 include CRE, Automotives and sectors or clients considered vulnerable to Climate transition and physical risks. CRE markets still face headwinds due to the impacts of higher interest rates, decreasing market liquidity combined with tightened lending conditions, and structural changes in the office sector. In the current environment, the main risk for Deutsche Bank’s CRE portfolio is related to refinancing and extension of maturing loans particularly in the U.S. where the Group continues to proactively work with borrowers to address upcoming maturities to establish terms for loan amendments and extensions. The automotive industry faces a challenging economic environment in Europe including potential U.S. tariffs, in addition to electric vehicle (EV) transition targets and competition from China. The difficult industry environment has limited impact on Deutsche Bank’s automotive and supplier portfolio thus far with only moderate downward rating migrations observed across small portfolio comprising 1.5% of the Group’s loan book. Climate transition and physical risks present growing risks to the bank’s sectoral and regional portfolios. Managing climate transition and physical risks is a key component of Deutsche Bank’s risk management and wider sustainability strategy, where 2024 materiality assessments and climate stress test results conclude that potential credit risk impacts are well-contained in the short term. Further details are provided in the section Focus areas in 2024.

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| Deutsche Bank      |
| Annual Report 2024 |

Risk and capital framework Risk management principles Deutsche Bank’s business model inherently involves taking risks. Risks can be financial and non-financial and include on and off-balance sheet risks. Deutsche Bank’s objective is to create sustainable value in the interests of the company taking into consideration shareholders, employees and other company related stakeholders. The risk management framework contributes to this by aligning planned and actual risk taking with risk appetite as expressed by the Management Board, while being in line with available capital and liquidity. Deutsche Bank’s risk management framework consists of various components, which include the established internal control mechanisms. Principles and standards are set for each component: – Organizational structures must follow the Three Lines of Defense (“3Lo