Deutsche Bank’s shares saw a 7% boost in early London trading after it reported its thirteenth consecutive profitable quarter, slightly exceeding market expectations. In the third quarter, the bank reported a net profit of €1.031 billion ($1.06 billion), surpassing the analyst consensus, which had projected quarterly net profit of €997 million. Although the bank’s quarterly net profit was 8% lower than the previous year, it marked a 35% increase over the previous quarter. Deutsche Bank’s corporate banking business delivered a strong performance, with revenues rising 21% year-on-year to €1.89 billion, benefiting from the current higher interest rate environment. However, the bank’s investment unit experienced a slowdown, with net revenues declining by 4% year-on-year to €2.27 billion and a 12% drop in the first nine months to €7.3 billion.
The bank expected full-year revenues of around €29 billion, at the higher end of previous estimates. Additionally, it revealed its intention to increase and expedite shareholder pay-outs and release up to an extra €3 billion in capital. Deutsche Bank’s CFO, James von Moltke, explained that the investment banking unit’s performance is “pretty much in line with the market” on an underlying basis. He attributed the normalisation of fixed income and currency revenues and a shift toward other products, such as credit and financing, as factors influencing the unit’s performance. Despite the bank’s improved financial results, challenges persist, including a weakening European business environment, macroeconomic uncertainty, and IT problems affecting two retail units.
