Deutsche Bank Exceeds Q3 Profit Expectations Despite 8% Slide

Deutsche Bank net profit slides 8% in third quarter but beats expectations

Deutsche Bank has announced a third-quarter net profit of 1.031 billion euros ($1.06 billion), surpassing analyst expectations despite an 8% decline from the previous year. This achievement comes amidst ongoing challenges in the bank’s investment unit. Analysts had anticipated a net profit of 997 million euros. Despite the year-on-year dip, the net profit was 35% higher than the prior quarter, marking Deutsche Bank’s thirteenth consecutive profitable quarter since its extensive restructuring in 2019.

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In comparison to the same period in 2022, the bank’s net profit in Q3 of this year saw a decline from 1.115 billion euros. The corporate banking sector performed strongly, with revenues rising by 21% to 1.89 billion euros, benefiting from the higher interest rate environment. However, the investment arm faced a slowdown, with net revenues dropping by 4% year-on-year to 2.27 billion euros, contributing to a 12% decrease in the first nine months of the year to 7.3 billion euros.

Deutsche Bank’s Chief Financial Officer, James von Moltke, highlighted the normalization of fixed income and currency revenues, emphasizing a shift towards other products such as credit and financing, which exhibited strength during this period. Key highlights for the quarter included total revenues of 7.13 billion euros, a provision for credit losses of 200 million euros, a Common Equity Tier One (CET1) capital ratio of 13.9%, and a return on tangible equity of 7.3%.

Despite these positive results, the bank faces challenges including a weakening European business environment, macroeconomic uncertainty, and IT issues in two of its retail units. Deutsche Bank shares have experienced a 13% decrease year-to-date.

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